I’ve started to invest in gold recently

gold-coins-200x200 I recently started doing something that generations of investors the world over have been doing for millennia. I am, of course, talking about investing in gold. Since I don’t have armed guards patrolling my house nor do I own an assault rifle, I’ve decided to take out my gold bug fever on exchange-traded funds (ETFs) and find the best way how to invest in gold . These are the safest and most liquid forms of gold investments. Thanks to ETFs, investing in gold is just like investing in stocks. Why gold? First and foremost, it is one of the most commonly recognized measures of value. People the world over recognize gold as a valuable commodity while they might not necessarily agree with the investment value of the euro, British pound, or dollar. Second, gold has a commercial value as well. In addition to being stored for its investment value, gold is also used in industry. Its value has more than one driver. Third, gold is a classic hedge against investment bubbles, inflation, and uncertain times. Anyone who has the brass balls to tell you that we’ve turned the corner on the global financial crisis is flat-out wrong. The truth is, Europe is always teetering to go in and out of recession, China has a huge inventory of empty houses and shadow investments, Japan has been the world’s economic zombie for close to twenty years now, America is still reeling from the after-effects of the financial crisis and housing crash, and the rest of the world is caught in between all these forces.

The bottom line is that there is a lot of uncertainty out there. Partially driving the uncertainty is the fact that all major currencies from the yen to the dollar to the euro to the pound don’t have squat to back them up. They are only backed up by their issuing country’s debt obligations. That’s all there is to it. At the end of the day, when you are holding the greenback in your hand, you are just holding a piece of paper. This makes the global financial situation tenuous by default. You can’t say the same with gold. Unlike paper money, gold has real value. People recognize its value and there is also a commercial and industrial use for it. Gold isn’t going anywhere. Paper money, on the other hand, just needs a few solid hits and it can depreciate in value quickly. The same is true for learning and advancing websites like mine, just today I found this great page to optimize css delivery.

With all that said, you need to remember that there is no such thing as a ‘surefire’ investment. It applies to things like losing weight and the same applies to gold. While gold does store value and helps hedge against inflation and currency devaluation, gold drops in value when the dollar goes up in value. Also, gold might not appreciate as much as stock market indices. Although it has historically grown in value over the long haul, you have to be a long haul player when investing in gold. You can’t play gold on a week to week basis. Your chances of losing money increases if you play the gold investment game on a short-term basis.

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