Why invest in gold bullion? Learn the reasons why you need to invest in gold in order to secure your savings, fight the consequences of inflation and reckless monetary policy, protect yourself against coming bank collapses and ride the current gold bull market all the way to the top.
One of the most popular reasons to invest in gold, especially gold bullion is to “hedge” against inflation. Because the main factor behind increasing inflation rates is the creation of additional currency (sometimes called the printing of money) gold bullion is a way to shield yourself from the effects of this. Every time more money is added to the supply of money, the purchasing power of all the money in the supply decreases because there is more currency chasing the same amount of goods. When you go to the supermarket for some groceries, this inflation is what makes everything get more and more expensive each year. According to official sources inflation is around the 4.2% mark. However, it is really much higher than this as that figure is an average of most goods available for purchase, including ones that tend to decrease in price such as electronics. Because the average person spends more of their money on things that are inflating in price at a greater rate, such as food, fuel, accommodation and education, the true rate of inflation is around the 10-20% mark.
To invest in gold bullion means that the money you have put into that gold is protected from inflation. Because gold is in such limited supply, it’s value cannot be inflated by increasing its supply. However, when the supply of currency such as the US dollar or British pound increases, the value of that gold goes up as well. Therefore, that same gold bullion, adjusted for inflation, is worth a the very minimum, the same amount virtually all the time. Having gold investments, especially in bullion protects you from inflation and stops the purchasing power of your money from being destroyed. That is reason enough for why you should invest in gold bullion.
However, with the demand for gold set to increase from countries such as China, India and Russia, as well as the worsening sub-prime mortgage crisis and a loss of confidence in “paper” money, the price of gold looks set to skyrocket. With gold sitting at just under $1000 an ounce, it is still very good buying. The current gold bull market is very young, and a large number of trusted analysts are predicting that $2000+ per ounce is not unlikely.
Why invest in gold bullion?
To protect you and your family’s money from inflation and ensure that your current level of purchasing power is maintained. Also, with the price of gold set to skyrocket, it looks like a very promising investment that is currently undervalued. What tends to happen with gold is when its price starts to increase rapidly, more and more people pile in and the price shoots further upwards. This phase hasn’t been reached yet, so I would highly recommend that you invest in gold now, before the increases in price make investment more difficult and less rewarding.
Source by Arthur Williamson
Why Invest in Gold Bullion?
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