Gold: As A Secure Investment

Economic crises can be a shock to many of us who can fall victims to the downturn. However, there are people who consider this long before anything can endanger their assets. These people are the ones who invest in the most solid form money can take. Gold is that solid investment which secures our future, analysts claim. The precious metal market has steadily increased over the years, and this market is doing well even during the current financial crisis around the world, and this makes investing in precious metals a smart investing decision.

This great investment is a smart step to a wise business. When hard times threaten our savings, we know its time we stored the values we own. We need to protect the assets we have worked for and buying gold bars is the best solution. Currency may lose its meaning in anxious periods and nobody will protect us from an economic decline or from inflation. The stock market has proven too many that they aren't ready to play roulette with their money. The investor who invested $10,000 in gold bullion in 2001, your initial investment would have grown to $43,330 by 12/31/11 – an amazing 333% percent increase. That same $10,000 investment in stocks of the S & P index would have gained $230. That’s only a 2.3% increase. Due to all of these factors, there has been resurgence in interest in investing in precious metals. Investors are a lot more skeptical than in the past and they are questioning whether it is the safest option.

Historically, investing in precious metals has been an excellent part & with the advent of online trading, investing is no longer something for the rich and famous. In nominal terms the price of gold has more than tripled in the last 20 years. It has gone from around $400 an ounce in 1990 to around $1,750. Adjusting for inflation, the price has risen by some 70%, so in today’s money the gold is worth just about $700.In India, the gold price is mainly based on the movement of the U.S dollar and the Indian rupee. One of the two has always supported the price of gold. In addition to this, according to the WGC, India and China jointly accounted for 52 percent of the global end-user investment in gold and 55 per cent of global jewellery demand in 2011. Year-on-year growth in total consumer demand was 38 per cent in India and 25 per cent in China, compared with a global growth rate of 7 percent. Thus with increasing demand of the particular metal making an investment in Gold is a good bet for investors