5 reasons why the whole world believes in gold!

Everybody in every corner of the world has ever heard about gold, and there is hardly a person who would not consider it a treasure. But, what are the main reasons for the use of gold in an economic way?

In this article you will find minimum 5 reasons why to create your own gold reserve. The reason number 4 will amaze you!

The role of gold in the economy of every country with interest in this precious metal, as well as individuals who invest and keep this precious metal, is to improve and strengthen it. That leads to a higher demand, and consequently higher gold prices.

Why exactly gold has become one of the main financial props of the humankind? What are the pros of gold?

1. Gold is more valuable than money

One of the main advantages of precious metals is their limited quantity. This is a crucial difference when paper money and gold, in particular, are compared. Paper money can be printed and issued any time increasing inflation and lowering exchange rates; for gold instead, that means a higher exchange rate and the increase of price as its character of safe haven when inflation increases.

2. Gold is the boast of its owners

From time immemorial gold has demonstrated the high economic status of its owner given it symbolizes wealth, power and welfare. Every person who owns gold, is a person with confidence in the future, ready for any circumstance at economic level.

3. Gold prices grow in mid- and long-term

From 2000 to 2011 gold prices boomed from $300 to $1,750. This mid term brought returns for each investor, helping them all off to a good start of the century. Experts consistenly repeat the risks that short-term investments bear, despite their appeal for rushed investors.

Now gold decreased in price relatively and experts have been buying this precious metal, before the anticipated upcoming growth arrives.

4. Gold supply is in free fall

You may think: “Is good a shortage of gold?” The less gold in the world, the more rare and valuable it will become. Since 2000 gold production has been falling. In addition, Central Banks are hoarding gold reserves day by day, strengthening their economy, and they are not for sale.

5. Gold maintains the economies of the countries and their currencies, as much as the financial status of the population

Besides the falling supply developing countries, mainly China and India, increase the demand for gold to support and improve their economy and strengthen their respective currencies. Not merely these large countries are interested in gold, this tendency is observed in other countries around the globe. Gold is being bought not only by Central Banks, but also by ordinary citizens in different corners of the planet.

There are much more significant reasons why one needs to look at gold as tool for protecting and increasing their capital. Gold is a time-tested metal; one of the most reliable and stable assets which considerably changes the life of its owner.

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