Without realizing it, delight in the beauty of women contributed to a major injection of precious metals investment market. Most women are familiar with the jewelry of gold, however, still a few who understand the value of gold as a reliable investment media. Therefore, this Monthly Futures will review the benefits of gold beyond the purely aesthetic beauty.
When compared to the protective value of another instrument, gold has specific advantages are interesting to observe. Here are 7 main reasons why gold is believed to be a potential investment area for women:
1. The value of gold is stable and tends to rise every year
Gold exchange rate stability against the consumption of goods has been proven for more than 1,400 years. Gold even been on the market since the 50th century. Figure 1 below shows the gold price rises continuously, starting from 2000 ($ 250 per troy ounce) until June 8, 2010 ($ 1,251.85). Based on this graph, it can be concluded that the rise in gold prices have reached a 5-fold in just a period of less than 10 years.
Figure 1: Movement of Gold in 10 Years (2000-2010)
2. Gold is an effective deterrent inflation
According to the inflation United States (U.S.), National Inflation Association (NIA), gold is a variant of the investment that must be owned by U.S. citizens. Financial prosperity and relative safety of assets guaranteed in gold, even in hyper-inflationary situation though. Potential long-term benefits are also increasingly clear with reference to the dynamics of the world economy. NIA claim that the current gold price is far lower than the ideal price levels, ie above $ 2,000 / Oz.
3. Gold is a safe haven and diversification of assets
Gold plays a major role in efforts to protect investor assets. No wonder that many investors will turn to this precious metal when the situation is uncertain. Gold has even contributed to the diversification of capital because it can preserve the value of assets at a time when other investments are losing money.
4. Gold can not be re-intervention and in print
Unlike the major currencies, gold prices could not be controlled or reprinted by the state. Any state government can not intervene in the movement of gold, given the results of this earth belong to all classes, both institutions and individuals worldwide. Thus, the market mechanism to determine the performance of global gold prices.
Purchasing power of all currencies against the yellow metal continues to decrease each year. Even the amount of gold's purchasing power has shrunk by 80% during the first decade. If ten years ago one gram of gold is equivalent to Rp. 66.000, is now a sum of money could only be to make up about 0.2 grams of gold.
5. Low Interest Rate USA (0 0.25%)
Low interest rates in the United States (U.S.) discourage investors to invest in dollar savings deposits. Moreover, the U.S. central bank is not showing signs of interest rate cuts in the near future. The reason is that reducing the level of U.S. women's participation in the form of investment deposits because depositors simultaneously attract and divert liquidity to the portfolio of gold.
Above assumption is the basis of the magnitude of opportunities rising gold prices in the future. This potential is only realized by retail investors and banks, governments and even some countries had already done the conversion of national assets. India, China, Russia and Venezuela are consistent exchange assets of USD or Euro currency into gold.
Keep in mind that gold is certainly not a form of gold jewelry because the jewelry will be eroded by the costs, such as the cost of manufacture, the cost of art, and other brands. Expenses are not counted as an additional price at the time of resale, as accessories of gold will be melted into new jewelry.
Type of gold used as a gold bullion investment is best. This is because gold bars have the same quality standards and do not know the cost of manufacture. So the resale value will not be shrinking anytime and anywhere. Along with low interest rates and stable property prices (as happened in China at present), gold investments offer security and comfort for investors, especially women. Begin gold hunt now.
Happy investing!
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