Why own gold? This is a question which is been often asked by the potential gold collectors.
As, all of us know that good is rising steadily and is rising to a new level currently. However, there are speculations that gold might rise to another new level in its history.
The actual fact is that gold has proved to be stable since for 200 years as a purchasing power, the gold’s value is distinct from the purchasing power of US dollar for example and it still remains the same or better than previous.
If you have a simple look at the history, you will be able to find that one ounce of gold has changed hardly. One ounce will purchase the same thing that it did 200 years back. However, the might change in the paper currencies due to the manipulation that was done and removing of gold from backing the currencies all over the world is been very dramatic and it can be easily shown by the consumer price index all over the world. Gold’s cost was 20 dollars about 200 years ago but now it is costing more than 250 dollars per ounce. However, yet one gram of gold will purchase the things that it did 200 years back. In fact, gold is tending to buy more.
It is very much likely that this scenario will continue for the next two centuries in spite of recession and inflation. The value of gold will not come down till the paper money is printed all over the world. But in terms of purchasing power, the value of pure gold will not come down. This is the main reason as to why the gold is to be purchased.
The next question that arises is that what sort of gold has to be purchased ?
Out of the four types of possible things including exchange trade funds, stocks, bullion and future, bullion is the one that will not loose its value at all. Futures will however change wildly, stocks will crash and the funds that are exchange traded will vanish. Even though based upon the actual stocks rather like that of the dollar when it is backed by gold but the gold still has the volatility in trading in just the similar ways that it is done in the futures and stocks.
Bullion has great history of remaining steady, whether it is gold coins or gold bars and both of these have the constancy of being the actual gold somewhat than the representation of it. Both the coins whether it is emirates gold, dinar Muslim gold, American gold coins or Australian gold coins or the bars will not loose their sheer value even if there are stock markets down or even in the cases of economic downturn or recession. Transportation of both the gold bars and coins can be done easily and can be stored safely at some ideal place so that it can be used as a medium to invest.