Tuesday 25 December 2012

Gold: The Best Investment


Investing has proven to be a good way of saving one's money from its value depreciation due to inflation. Controlling inflation can be so hard for individuals so investing is the solution to escape the wrath of the lowering down of money value. When the money has been invested, it has a chance to appreciate its value over time depending upon the demands and its value in the market.
Many forms of investments have come out where people can place their hard-earned cash and save it for their future. There are real estate, stock market, mutual funds, savings and time deposit accounts, bonds and gold investments. They differ from one another but all of them have the chance to grow the invested money over time.
In 2012, a survey was done by Gallup wherein the results showed that most people in the USA prefer gold for long-term investment. Its priority is followed by stocks, saving accounts, and real estate. Then, bonds come after them all.
Gold has been seen to actually gain value in the past years even though in the recent years the value's growth has slowed down a little. It has been affected by the world economy. Despite of the traction in the US economy, gold has been a little down although it still shows bigger value than other investments.
Short-term investing on gold may not prove to be as lucrative as before, but its long-term promise shows significant returns than other investments. Despite of the uncontrollable monetary fluctuations and economic uncertainties, three factors still dictate the value of gold in the market.
First, the demands for gold in rising Asian nations are growing as more middle class from countries like China and India would invest in gold. Both nations occupy the 40% investments in gold every year. The expansion of the middle class has increased the purchasing power that will affect the worldwide demand for gold.
Second, countries also invest in gold as they use it for their reserves and standard of their monetary system. The gold demand increases especially for the developing countries because they think that gold is the safest investment. The trend will continue in the future based on the gathered data.
Lastly, gold mining around the world has remained stagnant will continue to do so in the recent future despite of the increase in the value of gold. It will make the demand for gold to go up and the value for it will also increase.

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