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Invest for Future – Invest in Gold Investment in gold has always fascinated humankind because gold is money. This is because of its use and its demand all over the world and its acceptance as a store for value. In contrast to other commodities, gold does not perish, tarnish or corrode, nor does the quality of gold degrade. Buying gold coins and gold bars is the best way to invest.

A hedge against inflation: Gold is known to have a hedge against inflation. The most consistent factor determining the price of gold has been inflation - as inflation goes up, the price of gold generally goes up along with it. Since the end of World War II, the five years in which U.S. inflation was at its highest were 1946, 1974, 1975, 1979, and 1980. During those five years, the average real return on stocks was 12.33% whereas the average real return on gold was 130.4%.

A hedge against a declining currency: Gold is bought and sold in currency, so if the value of currency declines, there is rise in price of gold.

A safe haven in times of geopolitical and financial market instability: Gold has been called the “crisis commodity�. This is because it always outperforms other investments during periods of political or financial instability in the nation. Gold has raised the most when confidence in government is at its lowest.

Demand and Supply of Gold: The demand for gold is outrunning the supply. The production of gold is continuously declining. The demand of gold is increasing a lot in Asian

countries. There is quite an encouragement in these countries to accumulate bullion.

Store of value: Gold can never be a worthless piece of paper. It will always have an intrinsic value. Gold has always proved to be an effective preserver of wealth and a safe haven in times of social and economic instability.

Portfolio diversifier: Diversification of portfolio can improve overall performance of the investment. Gold should always have a portion of the portfolio because when all the stock value goes down, the value of gold goes up.

Gold is different than other precious metals like silver, platinum and palladium because the demand for these metals arises from its industrial applications. Gold is primarily produced for accumulation whereas other commodities are used for consumption.

As mentioned, values of gold bullion do fluctuate but does not fall very badly. In last five years, the value has fluctuated at a daily, weekly and monthly level but overall commodity value has gone up considerably. Starting at $900 per troy oz in Jan’2008, prices stayed almost at the same level in Jan’09, thereafter the rise was steep, prices went up to $1100 per troy oz in Jan’10, $1400 per troy oz in Jan’11, close to $1700 per troy oz in Jan’12 and expected to be at almost the same level of $1660 in Jan’13.

Investment in gold always pays well. This is what history proves and hence a good reason to believe.

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