Gold is the ultimate insurance against economic and financial difficulties
The words credit crunch send shivers racing down the spines of the majority of the developed world. Whether rich or poor, the fact of the matter is that we are all affected, and entering into financial investments at this tumultuous time can be risky business.
But while most investors reel in anger as their bricks and mortar dwindle into negative equity and their stocks lose value quicker than an ice sculpture in Thailand, those who have turned their cash into gold are laughing all the way to the bank.
Gold and Silver Investments are dedicated to assisting those who are searching for a more stable mode of asset protection as an alternative to the more commonly sought after property and stocks. They do this by offering their clientele gold coins, gold bars and government gold certificates.
Gold is a substance which like oil, is non-replenishable. As such, Gold bullion production is declining and increasingly smaller amounts of Gold bullion is mined each year. The country that has produced more gold that any other throughout history, South Africa, produced over 1000 tonnes of the sought after substance back in 1970. Demonstrating the incredible decline in Gold production, the region produced less than 260 tonnes last year. As such, perhaps sooner that we think, the value of Gold will likely be considerably higher than it is today.
In this same period of thirty-seven years; a blimp on the radar of this earth’s lifespan, the population of our precious planet has more than doubled. Inducing a huge strain on our limited resources, the value of non-renewable substances, such as gold, can likely only head in one direction. So long as there is demand; and demand is likely to increase as supplies head the opposite direction, gold will be of greater and of ever-increasing value and as such will remain as a very reliable source of wealth preservation.
Executive director of Gold and Silver Investments, Stephen Flood, said, “Unlike paper investments such as bonds and equities whose value is dependent on the performance of governments, banks, corporations and the global economy - not the most reassuring of propositions at this moment in time - gold is a hard, tangible, very limited in supply asset whose value is intrinsic to nature. It is estimated that if all the gold in the world was refined and made 0.9999 pure, then compressed into one very large bar it would be only the size of a 25 square metre cube, meaning it could be placed neatly on the centre court at Wimbledon.”
Gold remains a fringe investment and the preserve of the ‘smart money’ who have been diversifying into gold in recent years. A distinct lack of knowledge and information regarding investing in Gold means that now remains an excellent time for prudently diversifying with a precious metal investment. Every man and his dog is attempting to protect their assets in property, stocks and increasingly cash; however gold is the forgotten investment and remains taboo in much of the media. Pushed to the side and disregarded as a possible safety net for future cash crises, those who do invest in gold are in possession of a significant advantage over those who choose more common investment schemes for asset protection.
Mr Flood added, “Gold is the ultimate insurance against economic and financial difficulties. One purchases health insurance for one's family and oneself not in anticipation of severe health problems but simply in case of that eventuality. Similarly one should invest in or save in gold not in anticipation of economic or financial difficulties but simply in case of them.
“When we buy home insurance or car insurance we are acting out the old proverb of ‘hoping for the best and preparing for the worst’, similarly gold is not the preserve of doom and gloom merchants, but rather prudent individuals who hope to protect, preserve and grow what wealth they have been fortunate enough to gain through their hard work or financial acumen. One does this through diversifying it into the safest asset known to man - gold. ”
With no end in sight to the fog of the global credit crisis, the value of paper money is increasingly unstable; just observe the recent fall in value of the pound versus gold, the dollar, euro and other currencies to glimpse proof of this. The end result of a decline in the value of paper pounds is unpredictable but by investing in gold, investors can rest assured that through prudent asset diversification and asset protection their assets and wealth remains secure whilst simultaneously growing.