| HEDGE AGAINST LONG TERM INFLATION |
Throughout recorded history, gold has held its value against inflation. Experts say, for example, that the same quantity of gold is needed to by a loaf of bread today as in sixteenth century England. This is why so many investors worldwide see ti as the "ultimate asset" - an important and secure part of their investment porfolios.
...against devaluation
Gold has an international value that tends to respond to the changes in value of currencies. Time and again, gold has proved hedge against almost any monetary crisis, moving independently of paper investments.
For example, in the slump following the "Wall Street Crash", from September 1929 to April 1932, the Dow Jones Industrial Index slid from 382 to 56 - a drop of 85% and some 4,000 U.S. banks closed their doors. Meanwhile, the price of gold acually went up.
Gold also increased in value the events following "Black Monday", October 19, 1987, when the morgan Stanley index of world shares fell 19% over 10 days. And during the mini-crashed which have afflicted the stock markets since then, gold has held its value and ignored the travails of share investment. |
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| THE INTERNATIONAL TANGIBLE ASSET |
For thousands of years, gold has been man's premier store of value, more trusted world wide by individuals than any paper investment or paper currency.
Gold cannot be inflated by printing more of it. It cannot be devalued by government decree, and, unlike paper currency or many other kinds of investments {such as stocks and shares}, gold is an asset which does not depend upon anybody's promise to repay.
Rare
Although gold has been mined for more than 6,00 years, only about 110,000 metric tonnes have ever been produced. If you could bring it all together, that is just enough to make cube measuring only 18 metres along each side. Because of the scarcity, gold is one of the most sought after metals on earth.
Gold cannot be fabricated by man. Nature limits its supply. The amount of new gold mined each year totals less than 2,000 metric tonnes - an amount that could be fitted comfortably into the living room of a small modern house. |
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