Investing in Gold

Investing in Gold

Investing in gold is probably the most popular form of investment because its value almost never decreases and it is a good safety net against economical market fluctuations or political crises. However, gold is yielding to market speculations as well, just like any other market value like stocks or bonds; the value of gold will depend on its future uses and certain analyses as well as its history on the market show that gold comports itself more like currency than like a commodity.

When investing in gold, one must do a fundamental analysis, much like you would do with any other business or company that you want to invest in, that you want to purchase stocks or bonds from. This means that you’ll have to look at its history on the market, as well as its present values to see what is best to do. For example, an ounce of gold used to be valued at $250 in 2001, whereas now it is valued at approximately $1,900. It seems that since 2001 its values have reached new highs every year, so one could really consider it a great investment. So if you’re looking for business ideas but have none, you could make sure your capital maintains its value by investing it in gold temporarily. Money has to move in order to maintain value anyway, so besides keeping them in the bank as normal currency, you could turn them into gold. Business ideas come and go, but the money you’ve worked hard to gain can slip through your fingers if you don’t employ them correctly.

The appeal of investing in gold can be traced very far back in history when it was a means of exchange and of keeping and maintaining wealth. We’ve all seen those movies with rooms filled with golden treasures. Gold is and will always be valuable thanks to its great chemical properties. As we mentioned before, to invest in gold is a good hedge against political, social or economical crises that might send one’s stock investments down the drain, against inflation and other crises and market fluctuations. Gold is so stable and has always been so stable that it was used as currency, whether in the form of gold coins with a specific value or in its rough form, nowadays usually as an ingot or bar.

Investing in gold is also a good start for rookie investors who aren’t so confident in their business and stock market skills. Many people invest in valuable objects like gold, jewelry, silver, art items, properties or houses because they’re more likely to at least keep their initial value if not actually increase it. Furthermore, many countries’ governments have for a long time, or at least recently, started to invest in gold and keep the country’s economical resources in this form precisely to have a safety net against future crises or disasters.