Gold Can Lift you during Economic Slump

Thursday, May 30, 2013

Gold Can Lift you during Economic Slump

Economic Crisis
Economic crises have been increasingly hitting the market in recent times.  These are highly volatile, and in a jiffy all your money will be nowhere. When the national economy topples or the global economy is under turmoil, you as an individual face its dire consequences too. And financial markets are never safe; if you cannot quickly adapt to the changing times, you are bound to fail and fall.
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Gold – Assurance of Stability
Gold, due to its property of remaining stable during tough economic times, has gained the reputation of a saviour. Gold isn’t called a ‘noble metal’ for the heck of it.  Gold prices remain stable over the long term, though, there are short term changes due to market volatility. Gold has been cherished long ago not only as a metal for jewellery-making but also due to its reliability and ability to grant generous returns on its investment. Many a stock broker has been known to cry due to severe financial losses.
Stock market crashes are the leading cause of financial troubles all over the world.  The Great Recession of the US that affected the whole world since 2007 is still almost fresh in our memories. Almost every person faced the repercussions of the rash decisions of a few dealers in the US.  Not only in the US, but there has been some sort of financial crisis in Japan and the Middle East too. Dubai was in the news some 3 years ago due to a similar economic collapse. Financial markets are in turbulence; their effects are felt worldwide like a ripple in the far corner of an ocean setting the whole ocean on a tsunami wave. And this is no exaggeration!
Gold Investment – A Wise Decision
If you invest wisely in gold, you can be rest assured even under extreme financial market turmoil. Gold investment takes many forms like gold coins, bars, and bullion. If you want to buy gold, make sure you carefully analyze what type of gold suits you.  You may buy gold in lumps or at regular intervals say, every year or every five years.
Gold Value Rises when Dollars Fall
The value of gold rises when the value of dollars falls according to international standards of currency. So, in case the value of dollars has fallen significantly, your other investments like in stock, shares, funds, and insurance are likely to give you minimum or no returns making you incur losses. At such times, you can safely turn to gold and silver to make money. Selling gold and silver during the financial crisis where dollar value has fallen will give you considerable sums of money. The result is your ROI on gold investment increases tremendously.
Gold – Safe Haven
It has become a trend nowadays to invest in gold bullion bars and coins as a part of investment portfolio.  People no longer consider buying gold only for jewellery on festive occasions.  Before buying gold bullion, you must make sure you make a complete analysis of the gold market and its performance over the long term. Ask an investment expert to help you in the right direction when you want to invest in gold and silver.  They are well aware of business complexities and can accurately inform you when the right time to buy gold and silver are.
One overriding aspect to be noted before investing in gold and silver is that it is better investing in physical gold rather than buying paper gold, that is, shares having standards equal to a certain weight in gold. This is because paper gold is again subject to becoming shaky in the wake of tough economic market conditions. Paper gold is not a strong or certain protection during difficult economic conditions. Concrete gold is something you can hold in your hands; it’s yours until you go to the market and sell it. There is no law or market condition governing it except the gold prices.
And the best thing about gold is that if you don’t experience any dire financial situation in the future, you can still brag about buying gold in its original condition, whereas stocks and shares are nothing if you cannot Encash them. Gold as an investment exudes pleasure that shine the whole ambience. When you take a gold bar in your hands, you look like a rich king even when you have nothing else left with you. With gold, you always stay strong even if the world turns upside down.
About the author:  

Ale Rossi is an avid financial writer. She specializes in writing articles about finance and investment.

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