Why Own Gold? – 6 Reasons Why Investors Own Gold

There are six primary reasons why investors own gold:

  1.  As a hedge against inflation.
  2.  As a hedge against a declining dollar.
  3.  As a safe haven in times of geopolitical and financial market instability.
  4.  As a commodity, based on gold’s supply and demand fundamentals.
  5.  As a store of value.
  6.  As a portfolio diversifier.

Gold is a monetary metal whose price is determined by inflation, by fluctuations in the dollar and U.S. stocks, by currency-related crises, interest rate volatility and international tensions, and by increases or decreases in the prices of other commodities. The price of gold reacts to supply and demand changes and can be influenced by consumer spending and overall levels of affluence.

Gold is different from other precious metals … read more ->

Central Banks Boost the Gold Price

The outlook for Gold Prices, buoyed by central-bank monetary policy…

EXPANSIVE MONETARY POLICIES by central banks worldwide have improved the long-term outlook for commodities, says Commodity Online – led by precious metals such as Gold Bullion, as well as soft commodities.

According to a research report by Credit Suisse, the latest rally in commodity prices was driven by central-bank policies, Chinese strategic buying of key resources, and short-covering by speculative traders. Gold Prices rose in the past few months, mainly driven by safe-haven demand amid the global financial and economic crisis. While this demand supported prices, it also generated risks, some of which materialized – with safe-haven investors taking profits, resulting in a price decline.

The softening of prices gave …