GOLD-A Safe Investment
Market cycles come and go, but gold has maintained its long term valueThe value of gold, in terms of real goods and services that it can buy, has remained remarkably stable. In contrast, the purchasing power of many currencies has generally declined.
Gold is among only a handful of financial assets that is not matched by a liability. It can provide 'insurance' against extreme movements on the value of traditional asset classes that can happen in unsettled times.
In fact, statistical analysis shows that over the past thirty years, the correlation between gold and the Dow Jones Industrial Average actually declined during the worst 30 months of the equity index – an indication that investors in gold had the protection they sought when they needed it the most.
Gold is among only a handful of financial assets that is not matched by a liability. It can provide 'insurance' against extreme movements on the value of traditional asset classes that can happen in unsettled times.
In fact, statistical analysis shows that over the past thirty years, the correlation between gold and the Dow Jones Industrial Average actually declined during the worst 30 months of the equity index – an indication that investors in gold had the protection they sought when they needed it the most.
Nowadays, gold certificates offer investors a method of holding gold without taking physical delivery. Issued by individual banks, particularly in countries like Germany and Switzerland, they confirm an individual's ownership while the bank holds the metal on the client's behalf. The client thus saves on storage and personal security issues, and gains liquidity in terms of being able to sell portions of the holdings (if need be) by simply telephoning the custodian.
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