Premium gold investing advices with Ken Poirot
Premium gold investing tips with Ken Poirot? Whether it is the tensions in the Middle East, Africa or elsewhere, it is becoming increasingly obvious that political and economic uncertainty is another reality of our modern economic environment. For this reason, investors typically look at gold as a safe haven during times of political and economic uncertainty. Why is this? Well, history is full of collapsing empires, political coups, and the collapse of currencies. During such times, investors who held gold were able to successfully protect their wealth and, in some cases, even use the commodity to escape from all of the turmoil. Consequently, whenever there are news events that hint at some type of global economic uncertainty, investors will often buy gold as a safe haven.
Gold has historically been an excellent hedge against inflation, because its price tends to rise when the cost of living increases. Over the past 50 years investors have seen gold prices soar and the stock market plunge during high-inflation years. This is because when fiat currency loses its purchasing power to inflation, gold tends to be priced in those currency units and thus tends to arise along with everything else. Moreover, gold is seen as a good store of value so people may be encouraged to buy gold when they believe that their local currency is losing value.
Speaking of gold, it is easily the oldest form of currency in use on earth. It was used by our ancestors centuries ago and is still used today, its mention can even be found in the epics of Hindu mythology which highlights the position that gold holds in the Indian and especially Hindu culture. It is considered as a carrier of good luck and thus is gifted to the new brides and other important milestones of life as well. Therefore, one of the tools which are popular for this purpose is the financial investment which allows a person to multiply his savings by investing it into one of the multiple options available like mutual funds, real estate, gold etc. Find additional information on how to buy gold.
Following the advent of gold as money, its importance continued to grow throughout Europe and the U.K., with relics from the Greek and Roman empires prominently displayed in museums around the world, and Great Britain developing its own metals-based currency in 775. The British pound (symbolizing a pound of sterling silver), shillings and pence were all based on the amount of gold (or silver) that it represented.3? Eventually, gold symbolized wealth throughout Europe, Asia, Africa, and the Americas. The U.S. government continued on with this gold tradition by establishing a bimetallic standard in 1792. The bimetallic standard simply stated that every monetary unit in the U.S. had to be backed by either gold or silver. For example, one U.S. dollar was the equivalent of 24.75 grains of gold. In other words, the coins that were used as money simply represented the gold (or silver) that was presently deposited at the bank.
Why Is Gold Valuable? Gold is valuable largely because of its historic attachment to the value of our currency. In ancient times, gold was used for coins and jewelry because of its malleability. As paper currencies were developed, the notes were designed to correspond with a specific amount of gold. While this is no longer the case, gold’s historic importance in our financial system keeps this commodity valuable. According to The Motley Fool, about half of the world’s current demand for gold comes from jewelry. With another 40 percent being the demand for physical gold investments, such as coins and gold bars. Both investors and financial institutions purchase physical gold for these purposes, and most recently exchange-traded funds that buy gold on behalf of investors. The leftover demand for gold typically comes from the technology and medical industries. Find extra information on https://medium.com/@ken_poirot.