There are two views on why gold continues to rise, attracting the attention of hedge funds and investors. First, we see that interest rates have been negative. Second, gold maintains its real value compared with legal tender. The faster the fiat currency(i.e. USD, EUR, GBP or JPY) occurs, the faster and deeper the deflation will be.
We are now living in a very unstable, bumpy and unprecedented era. The Greek uprising and unrest caused by the devaluation of the currency caused fear. People are expected to return to the factors that can both increase wealth and protect things that can stand the test of time.
Analysts believe that deflation will lead to a second recession in the next few months. Gold is necessary to prevent the obvious expansion of deflation. Deflation will destroy everything, including base metals, commodities, housing and job creation. The only factor that can preserve wealth is gold. Unlike useless fiat money, gold cannot be devalued. History tells us that before Roman times, gold bullion was also an important source of wealth protection. As a strategic measure, buying gold bars has always been on the side of investors.
The facts are shocking and hard to ignore. Although it is said that the worst part of the economic recession has passed, American enterprises have not increased their motivation as expected. Some reports show that compared with recent months, business growth has actually slowed down. This is seen as a clear sign that the American workforce is struggling. The real unemployment figures have never been proposed, and politicians are constantly seeking their interests. The actual unemployment figure in reality is at least 10% higher than that reported by the media. In the case of economic downturn, in the face of uncertainty, they are eager to protect personal property. As a result, many people returned to gold and began to protect their wealth.
Gold bars are much more stable than stocks or other investments. Because of the simple and tangible investment quality, its market prospects are much better. These wonderful factors also offset inflation, providing real wealth protection and no counterparty risk. This is why gold bullion has become a valuable asset for so many people in the world over the centuries. You should take time to learn all about gold and its benefits.
Please remember that grade and certified coins are collectibles. Their actual value depends on the price people are willing to pay, not the actual value they buy. Therefore, if you want to make profits in today’s economic conditions, they may not be your best investment. Although gold bars are good for collectors and enthusiasts, they can bring more stable profits under any economic conditions when inflation, deflation or banknotes are damaged by hyperinflation.
Tom Ginot-
