Why you should not "invest" in gold Do not get me wrong - I'm certainly not against buying gold, but as an asset class to see how it behaves differently from other investments such as stocks, bonds or real estate. When you buy a stock for IBM receives an annual dividend (hopefully), and (hopefully) the stock value increases over time, even when you buy a property as an investment. With gold is a little "different. The reason why gold is regarded as a safe haven is that it is a store of value, never loses its purchasing power.
There is an adage often cited as an ounce of gold in Roman times, an army officer would be to buy a nice suit of clothes, which, in Shakespeare's time an ounce of gold bought a good set of clothes and TODAY 'Today, with gold at a little over $ 1000 it would buy a nice Armani suit. But just as in the course of time not to lose purchasing power does not increase the purchasing power.
The real long-term nature of gold is insurance and not as an investment. Since wars are fought, the collapse of governments, people falling economies have fallen into gold, because they know it ' is a place where you can keep the wealth they have.
Yes, you can choose up to gold over the last 8 years or more and say what a great "investment" was, but if you see gold as insurance and most importantly, buy it, you will be able to withstand fluctuations in the price volatility that often occur in the gold market will be less concerned about prices and daily operations of you can see the gold price did not increase the paper money in the portfolio has decreased.
Now to protect myself against the coming hyperinflation or Super - or maybe not
Many commentators speak of the gold printing too much money from central banks, as it will inevitably lead to higher inflation, even as hyperinflation and gold will protect you. Well, yes and no. Gold is not an immediate cover against inflation that everyone thinks as many as a hedge against political risks. When gold sharply to $ 850 in 1980, it was not a reaction to high prices, much of the uncertainty surrounding the future of the dollar. In subsequent years, inflation is still continuing, but the price of gold fell. Gold is a hedge against inflation actually in the long run, because in the long run, it retains its purchasing power, but they are only 10% because inflation has increased by 10% - the History is unclear on this.
There is a high risk of a collapse in global currency - So Gold is the only safe haven?
E 'in February 2010, and Greece is on the verge of bankruptcy with Portugal, Italy, Ireland and Spain, all stand in line to follow, if these countries can take many others with them. Countries like Germany will also be carried out as dramatically as the money kept part of the debt and then sold the rest to insurance companies and pension funds with derivatives called credit insurance. U.S. states like California and Illinois are worse off in Greece. The global financial system is massively linked by a complex system of derivatives, there were more massive debt, and someone must pay the piper. Thus, there is a certain inevitability to the currency crisis on full make gold more attractive because it is the responsibility of anyone, can be printed to infinity. As governments seek can not be corrupted.
However inevitable collapse or a currency crisis may seem, there is no longer a market, or at least the big market players to agree with you. Even if the fundamentals are right may be time for the masses to cling to these principles. It might not be deceived by government bailouts and attitudes, but in the short term, many people are. So to be given because you can take many years with many twists.
What we now face is a huge credit crunch on this scale never seen before, so who knows how it will end. If you remember this particular incident in 2008 that the gold price and the collapse of the dollar to strengthen, if in the short and medium term, it could happen again. Again, if you see gold as insurance - the short and medium term it is not very important.
Gold Protection during a financial crisis
If gold is your only hedge against the financial crisis, then this might be a little play with fire. " Do you think there are many scenarios in which gold is useless, because no one should use for this, nobody wants to exchange their bags of grain for your ounce of gold, because it can not really eat. Gold is a store of value, but it is not alone. Food, clothing, basic seed, - the basic elements that people are still in need are also stores of value to a much wider market if you are motivated to buy gold because then you can imagine to pay for financial disaster have a good think about the other stores of value. The big advantage is having a large store of food and essential is that no matter what happens, you will always need time. Thus, money is never thrown!
Bartering with gold can be very expensive
If you invest in gold, because you can imagine barter with her one day - you think about it. I'm sure someone sharing a loaf of bread to an ounce of gold, but it will be a mighty expensive bread! Look at the precious metals in small denominations - junk silver coins - old coins from the United States who have money are a great alternative. They are easy to buy in any store and the room are very small (a piece of silver was $ 2 less than the value of money in)
There is an adage often cited as an ounce of gold in Roman times, an army officer would be to buy a nice suit of clothes, which, in Shakespeare's time an ounce of gold bought a good set of clothes and TODAY 'Today, with gold at a little over $ 1000 it would buy a nice Armani suit. But just as in the course of time not to lose purchasing power does not increase the purchasing power.
The real long-term nature of gold is insurance and not as an investment. Since wars are fought, the collapse of governments, people falling economies have fallen into gold, because they know it ' is a place where you can keep the wealth they have.
Yes, you can choose up to gold over the last 8 years or more and say what a great "investment" was, but if you see gold as insurance and most importantly, buy it, you will be able to withstand fluctuations in the price volatility that often occur in the gold market will be less concerned about prices and daily operations of you can see the gold price did not increase the paper money in the portfolio has decreased.
Now to protect myself against the coming hyperinflation or Super - or maybe not
Many commentators speak of the gold printing too much money from central banks, as it will inevitably lead to higher inflation, even as hyperinflation and gold will protect you. Well, yes and no. Gold is not an immediate cover against inflation that everyone thinks as many as a hedge against political risks. When gold sharply to $ 850 in 1980, it was not a reaction to high prices, much of the uncertainty surrounding the future of the dollar. In subsequent years, inflation is still continuing, but the price of gold fell. Gold is a hedge against inflation actually in the long run, because in the long run, it retains its purchasing power, but they are only 10% because inflation has increased by 10% - the History is unclear on this.
There is a high risk of a collapse in global currency - So Gold is the only safe haven?
E 'in February 2010, and Greece is on the verge of bankruptcy with Portugal, Italy, Ireland and Spain, all stand in line to follow, if these countries can take many others with them. Countries like Germany will also be carried out as dramatically as the money kept part of the debt and then sold the rest to insurance companies and pension funds with derivatives called credit insurance. U.S. states like California and Illinois are worse off in Greece. The global financial system is massively linked by a complex system of derivatives, there were more massive debt, and someone must pay the piper. Thus, there is a certain inevitability to the currency crisis on full make gold more attractive because it is the responsibility of anyone, can be printed to infinity. As governments seek can not be corrupted.
However inevitable collapse or a currency crisis may seem, there is no longer a market, or at least the big market players to agree with you. Even if the fundamentals are right may be time for the masses to cling to these principles. It might not be deceived by government bailouts and attitudes, but in the short term, many people are. So to be given because you can take many years with many twists.
What we now face is a huge credit crunch on this scale never seen before, so who knows how it will end. If you remember this particular incident in 2008 that the gold price and the collapse of the dollar to strengthen, if in the short and medium term, it could happen again. Again, if you see gold as insurance - the short and medium term it is not very important.
Gold Protection during a financial crisis
If gold is your only hedge against the financial crisis, then this might be a little play with fire. " Do you think there are many scenarios in which gold is useless, because no one should use for this, nobody wants to exchange their bags of grain for your ounce of gold, because it can not really eat. Gold is a store of value, but it is not alone. Food, clothing, basic seed, - the basic elements that people are still in need are also stores of value to a much wider market if you are motivated to buy gold because then you can imagine to pay for financial disaster have a good think about the other stores of value. The big advantage is having a large store of food and essential is that no matter what happens, you will always need time. Thus, money is never thrown!
Bartering with gold can be very expensive
If you invest in gold, because you can imagine barter with her one day - you think about it. I'm sure someone sharing a loaf of bread to an ounce of gold, but it will be a mighty expensive bread! Look at the precious metals in small denominations - junk silver coins - old coins from the United States who have money are a great alternative. They are easy to buy in any store and the room are very small (a piece of silver was $ 2 less than the value of money in)
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