Wednesday, June 13, 2012

Gold Is The Most Profitable Investment

By Jack Wogan


We are all well aware that for the past few years we have been going through a period of political and economic instability. An unpleasant effect of globalization is that what happens in one geographical area has a global effect. The consequences are felt virtually all over the world. An old proverb says that what happens in Rome stays in Rome. Well, it no longer does. Of course, this state of things poses the problem of finding a way to avoid or limit these negative consequences.

Investing it in a profitable business has been for a very long time the most common way of making money. At the beginning of the twentieth century the Stock Market offered people a new way of making money: the speculation with shares, which can make a nice profit in a relatively short time. But there is also a risk: it is extremely sensitive to any type of crisis - political, social or economic. It reacts immediately, and one can easily lose money when the price of shares drops dramatically in just a few hours.

Another effect is that the purchasing power of the population decreases. Fewer commodities and services are bought, so a business can easily become unprofitable. We see small companies go out of business every day or drastically reducing their activity. In this situation, more and more people are trying to find new means of investing and protecting their savings. That is the reason why gold, silver, platinum and precious stones have become attractive again.

At a first glance, it is a paradoxical situation, but if we analyse it more carefully, we will see that it is perfectly logical. People are looking for a safe investment, and at present this is gold. With a great value in a small volume, it is very attractive for all types of investors: private persons, legal entities or even governments. This explains the current rising demand for gold and other precious metals. If we look at statistics, we will see that the demand for gold has been on an ascending curve since the beginning of 2010 and so has its price. Gold transactions have proved to be very profitable, and analysts show that its price will continue to rise until at least the next year.

There are several options for buying gold - gold bars, coins or jewellery. In some countries gold can be purchased directly from major banks or, where this is not possible, investors can appeal to certified gold dealers. In order to meet all the requirements banks have a wide offer of bar sizes, from 1-ounce to 400-ounce (12 kg) ones. If you buy gold from a bank, it will often also store it for you at an attractive price. Gold transactions can be made on the internet, too. Moreover, investors can find here detailed information on the prices, comparative charts and information on the best dealers of the moment.




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