7 Reasons why to buy gold.

Bubbles are everywhere and any negative economic arrow can burst any at any time, bringing gold's dominance into full play. Wouldn't you like to know the main economic scenarios in which gold is used? Find out!

What are the main reasons why to BUY or NOT BUY gold? 


1. Historical value

Since its very discovery, nothing has been able to erode the allure of this precious metal as store of value, neither the paper currencies, nor other assets created specifically for that purpose. The metal has served when world's economies have been in shambles at any moment in history, turning it into the best good to pass in inheritance for further generations.

2. Demand and Supply

Since the 1990s global central banks started emptying their vaults of gold bars supplying the market, mainly of emerging economies whose culture is linked to the mineral and account for the largest percentage of gold demand. In recent years though, central banks have headed in the opposite direction with massive purchases of bullion when there was a pressing need to support their respective national economies.

3. Gold mining

Gold is scarce, and its production is troublesome: it is costly to produce as it emerges in small quantities and it requires up to 10 years just to start the production of a gold deposit. Some experts predict its exhaustion by 2030, what would bring into force the old rule of “less supply, higher price”. 

4. Inflation and Deflation

High prices damage economy in like manner as low ones. Gold is known to be a hedge against inflation having proved its worth in high inflation moments as after World War II when gold yielded high returns. Regarding deflation, like during the Great Depression in USA, the slowdown of business activity soared gold prices.

5. Investment Portfolio

The trick to secure investments is to hold assets subject to different external factors. Likewise, investors with a broad view of the market incorporate assets with returns in the short, middle and long-term. Gold tends to yield returns in the middle and long-term while reduces volatility of the rest of assets, including other risks given it is influenced by diverse circumstances than those which impact in stocks, bonds and others.




6. Other currencies

Gold is the parachute when the engine of the currencies' plane fails. The U.S. dollar is without a doubt one of the most important reserve currencies, though still subject to factors which influence the rest of paper money, and with a monetary policy not every country is willing to accept. For that very reason and with an unpeg from the dollar in sight, currencies like the yuan are being backed by the Chinese government with gold. 

7. Geopolitical Issues

Gold's role goes beyond economic purposes helping countries and individuals staying afloat during political tensions. When the alarm sounds in a country, gold is predominant in the investment market, as it was during European Union recent crisis that increased gold prices. As well the increase of purchase of physical gold bars to be protected against cases such as the recent "corralito" in Greece.


The most beneficial and rewarding conditions for the purchase of gold can be found in the Global InterGold Online Gold Shop. The Internet shop offers the highest quality gold bars for clients worldwide, besides additional opportunities.


Find out more in the official website: www.globalintergold.com 

Read more: First Global iGold company president's official message to clients!


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