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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 ->

Gold vs. Euros: The Non-Dollar Choice

Gold has now doubled since the Euro first got where it stands against the Dollar today…

SINCE THIS decade’s Dollar Decline first pushed the Euro above $1.35 in late 2004 – a level it reclaimed this week – the price of gold has gone on to double for both US and Eurozone citizens.

American investors and savers would have been much better off Buying Gold instead of Euros, in other words, as would everyone else. And looking ahead, “These days, currency weakness, relative to other currencies, matters less for gold,” reckons Standard Bank’s Walter de Wet.

“All major currencies are being devalued, and as a result – and on a relative basis – currencies are trading in the same ranges … read more ->