Mystic wealth

Mystic wealth

Monday, 28 December 2009

Gold Appreciation in Value Brings Good Wealth

Author: laura maya

Gold Appreciation in Value Brings Good Wealth

Gold Wealth , A long Term Investment .

About 20 years ago, Leon Richardson wrote 2 articles about the market of Gold. They are “Catch Them Young” and “A Golden Chance”. These 2 articles gave people an insight of the market of Gold, and what we can expect of it. Quoted from his article, Mr Richardson’s main reasons for favoring the idea of investing in Gold is that; Gold is an overdue market for a rise since 1980s .

It is also because, Gold always offers a stored value for investors to hold on to. In “A Golden Chance”, he also gave reasons for the upward trend of Gold; most mines have stopped selling their gold; US and Canada has slowed down production and there are more buyers than sellers in the market.

However, his prediction lasted much longer than what everyone hoped for to appear. It took nearly 15 – 20 years before the Gold market started to really move. Between the 15-20 years, the market remained stagnant. A stagnant market has cause many people to be unsure and is very difficult for anyone to speculate the next cycle. Thus, it has caused many investors to withdraw along the years as well, some has even made losses, due to other factors related to exchange rates mainly, and oil prices were a dull since before 2000.

Even so, now, the Gold market has started to rise at an “over-over-due” rate. Currently, the economy is in a crisis, the US-dollar has fallen drastically, period. And when the banks, such as Lehman brothers, started to collapse, the Government decided to save them by placing trillions of dollars into the economy save it. However, this has caused a great problem, “Inflation”.

This then causes the prices of goods to greatly rise through out the World , and US is the major dollar, it has caused a world-wide inflation phenomenon. However, due to China’s existence, it has helped cushioned the inflation. Having this, the prices of Gold would then definitely go up, as the amount of money in the circulation is definitely more than the amount of Gold suppliers can provide. The more money being put into saving the banks, the higher the prices of Gold would be. And if the economy does recover, the prices of Gold would then remain at the risen point and not go down. Thus, buyers of Gold from 20 years back and have held their Gold till date, or those who have in recent years bought Gold, have definitely gained from this “crisis”.

From this trend, we can see that Gold is indeed a very LONG-term investment. This is due to the fact that Gold prices are not easy rise, as its’ base prices is already quite high for buyers. It would be considered and inelastic luxury good, to many out there. Thus, in-order for one to invest in Gold, one must have a good amount of surplus in income at hand and is willing to place their money in it like a dead-weight. Otherwise, it would be unwise for just about anyone to invest in Gold.

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Disclaimer : The above article is not to serve as an investment tool or guarantee nor promise of guarantee rise of gold price in the future. The reader thus agrees that the author and publisher are not responsible for the rise or fall of gold prices ,nor reader’s business decision relating to the information provided in the articleGold Appreciation in Value Brings Good Wealth

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