How Is Gold Doing Nowadays?

In times of recession the financial market around the globe goes through a tough

period in which important states choose to give up the dollar as the reserve currency. Gold takes the lead being a refuge for wealth preservation. As the dollars value falls, gold and oil prices increase, reaching a historic high gold on international markets, exceeding $ 1,000 per ounce in 2008.

In 2009, its value increased by 20 percent compared with previous years, on the London market, being the biggest increase since 1948. Gold price increase is linked to problems encountered by the dollar, which has also led to increased price of oil per barrel to over $ 70. There are three closely related products on international markets: the dollar, gold and oil. When the dollar is down, gold and oil go up.

One of the reasons why gold keeps creasing is the U.S. dollar. When the dollar decreases, gold and oil prices grow. Alongside the collapse of the financial system, banks have competed in buying gold because of its stability no matter the country they buy it from. Gold has many advantages such as easy to transport, indestructibility, easy identification and high value on weight and purity all over accepted as currency. Also, gold is malleable and it can be shaped and stored into various designs which suit best for each and everyone. Almost 80% of the total amount of the precious metal around the world is recycled and used again and again.

In times of recession gold is the best way for wealth preservation and it also is safe hedge against inflation. Opposite of paper money which can be printed when needed therefore losing their value, gold has not yet been artificially produced. As a result, its value and price keeps on rising. In the past decade, global gold production has not increased at all and the price went up to 250 percent.

Buyers purchase gold in coins or gold bullion bars. With a price of $1,252,11 that was reached halfway through 2010, gold is nowadays the best form of investment. In the shape of gold bullion banks and companies sell the precious metal to those eager to protect their wealth. Experts affirmed that those who bought gold in 2009 can reach a profit up to 30 percent if they sell it this year. So not only gold preserves the wealth but it can also bring you a lot of profit.

by: Jack Wogan.

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