Call today or go to www.bit.ly/900gold Buy gold today 30% less than market price! Gold spot price is respected throughout the world for its value and rich history, which has been interwoven into cultures for thousands of years. Throughout the centuries, people have continued to hold Gold spot price for various reasons. Value | Unlike paper currency, coins or other assets, Gold spot price has maintained its value throughout the ages. People see Gold spot price as a way to pass on and preserve their wealth from one generation to the next. Weak U.S. Dollar | Although the U.S. dollar is one of the world's most important reserve currencies, when the value of the dollar falls against other currencies as it did between 1998 and 2008, this often prompts people to flock to the security of Gold spot price, which raises Gold spot price prices. The price of Gold spot price nearly tripled between 1998 and 2008, reaching the $1,000-an-ounce milestone in early 2008 and nearly doubling between 2008 and 2012, hitting around the $1800-$1900 mark. The decline in the U.S. dollar occurred for a number of reasons, including the country's large budget and trade deficits and a large increase in the money supply. Inflation | Gold spot price has historically been an excellent hedge against inflation, because its price tends to rise when the cost of living increases. Since World War II, the five years in which U.S. inflation was at its highest were 1946, 1974, 1975, 1979 and 1980 (as of 2012). During those five years, the average real return on the Dow Jones Industrial Average was -12.33%, compared to 130.4% for Gold spot price. Volatility | Gold spot price retains its value not only in times of financial uncertainty, but in times of geopolitical uncertainty. It is often called the "crisis commodity," because people flee to its relative safety when world tensions rise; during such times, it often outperforms other investments. For example, Gold spot price prices experienced some major price movements this year in response to the crisis occurring in the European Union. Its price often rises the most when confidence in governments is low. Supply | Much of the supply of Gold spot price in the market since the 1990s has come from sales of Gold spot price bullion from the vaults of global central banks. This selling by global central banks slowed greatly in 2008. At the same time, production of new Gold spot price from mines had been declining since 2000. According to BullionVault.com, annual Gold spot price-mining output fell from 2,573 metric tons in 2000 to 2,444 metric tons in 2007, Gold spot price saw a rebound in production with output hitting nearly 2,700 metric tons in 2011.) It can take from five to 10 years to bring a new mine into production. As a general rule, reduction in the supply of Gold spot price increases Gold spot price prices. Demand | In previous years, increased wealth of emerging market economies boosted demand for the precious metal. In many of these countries, the precious metal is intertwined into the culture. India is one of the largest Gold spot price-consuming nations in the world; it has many uses there, including jewelry. As such, the Indian wedding season in October is traditionally the time of the year that sees the highest global demand for Gold spot price (though it has taken a tumble in 2012.) In China, where the precious metals are a traditional form of saving, the demand for Gold spot price has been steadfast. Demand for Gold spot price has also grown among investors. Many are beginning to see commodities, particularly Gold spot price, as an investment class into which funds should be allocated. In fact, SPDR Trust, became one of the largest ETFs in the U.S., as well as one of the world's largest holders of Gold spot price bullion in 2008, only four years after its inception. Diversification | The key to diversification is finding investments that are not closely correlated to one another; Gold spot price has historically had a negative correlation to stocks and other financial instruments. Recent history bears this out: • The 1970s was great for the precious metal, but terrible for stocks. • The 1980s and 1990s were wonderful for stocks, but horrible for the precious metal. • 2008 saw stocks drop substantially as consumers migrated to the precious metal. Properly diversified investors combine the precious metal with stocks and bonds in a portfolio to reduce the overall volatility and risk. Bottom Line | The precious metal should be an important part of a diversified investment portfolio because its price increases in response to events that cause the value of paper investments, such as stocks and bonds, to decline. Although the price of the precious metal can be volatile in the short term, it has always maintained its value over the long term. http://youtu.be/yVfbuYZADZ0

• published: 14 Aug 2014
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