Business, The Golden Rule


by NEIL DENNIS - Date: 2008-11-06 - Word Count: 303 Share This!

Buy Gold When Interest Rates and Inflation Signal a Golden Opportunity.

History has shown that the most powerful safeguard during times of crisis and financial uncertainty is to buy physical gold. The rapid increase in inflation along with slow moving interest rates makes this the best time to buy gold. Owning gold is one of the best ways to hedge against inflation costs that can cut profits and spending power. More importantly how safe is your money in the bank and how do you protect your wealth?

With our major financial institutions under threat, buying physical gold provides the reassurance that you not only have an investment that is safe but that is going to increase in value. High bullion prices are here to stay as the demand for gold won’t wane any time soon.

If you look back over the year the gold price was $667 an ounce but rose to $1000 on 17th March when Bear Stearns collapsed, it then fell back to its current level of around $800.

The question is whether it is a good time to buy gold bullion now. The answer is yes, because the price is largely determined by supply and demand and there is a limited supply and gold is an asset which is not a liability against someone else’s balance sheet.

The current uncertainties within the world economy have brought people to the gold market who would never have considered it before. These people are not so worried about making a profit but want to have peace of mind and security for the wealth that they have already accrued.

Jeremy Charles, Chairmen of the LBMA says “there is an enormous pick-up in investment demand. I have never seen a market like this in my 33-year career. The gold refineries cannot produce enough bars.”


Related Tags: finance, gold, economy, gold bullion, trading gold, investingmoney

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