10 Reasons to Invest in Gold

Continuing the last post of Investing in Gold, below are reasons of why we need to put our money in gold investment on our personal financial planning. In purpose to diversify our investment vehicle, some financial experts suggest us to put our money to buy some gold.

Here are 10 Reason to Invest in Gold:

1. Gold is the ultimate safe haven asset. While other traditional diversifies fluctuate in times of crisis, gold has consistently demonstrated improvements portfolios in times of instability and stability.

2. In recent years it has again become one of the best financial options, presenting the following growth: 2005 28%, 2006 18%, 2007 31%

3. International financial analysts coincide in pointing to the gold as one of the ideals active in diversifying and balancing an investment portfolio.

4. International analysts believe there is a correlation between the price of oil and gold prices, explained that it is very likely that oil prices continued their upward trend facilitated by the enhancement in oil consumption in some developing economies.

5. The appreciation of gold in emerging economies. China's laws changed for the first time allowing private investors to buy gold. China has one of the highest savings rates in the world. For its part India, one of the largest consumers of gold in the world, through an unprecedented economic boom, which boosts demand for the metal.

6. The increase in money supply and inflation are the main reasons that the "paper money loses value daily. Both in Europe and the U.S., interest rates are below inflation and are therefore negative.

7. The tendency to invest in gold has not gone unnoticed by big global investors have started buying gold in large quantities, which contributed to a gradual increase in the price of gold.

8. Gold is a highly liquid investment. It is both an asset and a currency.

9. The words of the experts indicate that all the ore of gold mined in human history amounts to some 153,000 tones and the remaining gold reserves do not exceed 50,000 or 60,000 tons, ie an annual mine production of 2,900 tons, within 12 or 15 years, known reserves would be depleted.

10. World population grows by about 100 million people a year. The exponential population growth accompanied by the limited availability of natural resources like oil, gold, silver, platinum and other metals are likely signs that the values of these commodities could continue to rise.

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