Gold at the current cca.1.350 dollars / ounce level is considered by some analysts as overpriced, while others believe that it still has a significant investment potential. One thing is certain: gold is finite raw material. Current mining capacities will be depleted in 15-20 years. At this time, the world's investor society will be divided into two parts: gold owners and those who want to own gold - the question is just how much it will cost for them.
Gold is not only a realistic alternative of the dollar-based money market instruments, but it can also provide good results against investment assets listed in other currencies. (Although the gold investment does not pay interest, this greatly compensates for the fact that as long as other financial products have a significant risk, gold is a "great relaxed" investment - that means owners have to worry less about their investments compared to other investors.
Gold is a less volatile investment instrument than equity investment and most commodity investment. Accordingly, it is an ideal investment for those who are avoiding significant risks, and safety and tranquility are an important value of their savings.
Although there is no direct relationship between gold and the yield of other financial products, such as equity, gold has traditionally been a popular "escape trip" for investors - especially when stock markets are downhill.
Gold has always been a testament to stable value since the beginning of the world. Looking back to centuries, gold proved to be a reliable and predictable investment form.
The inherent security of gold is caused by its independence. The value of gold is acknowledged and guaranteed all over the world, regardless of the political system, economic situation, different currencies, different cultural traditions or other circumstances. Products audited by the London Stock Exchange are taken over, purchased and accepted anywhere in the world.
Anyone who has gold is always having money. Gold is traded 24 hours a day across the world. Gold is the only truly international currency that can be traded anywhere in the world at any time and can be exchanged into cash.
Despite all the world price fluctuations that have been experienced in the past, the value of gold is stable in the long run.
National banks use gold as security cover. According to many investment experts, individuals should also have 5-10% of their wealth in precious metals. It is expedient to build the private gold reserves for a prolonged period through the gradual purchase of smaller quantities and thus to compensate for possible exchange rate fluctuations.
42.5 ounces of gold worth was enough to buy a car 100 years ago buti t is still enough for it today.