Gold is listed among commodities by analysts because it has a consistent value that is measured on the internationally recognized carat scale. But this particular commodity has been used as a currency since ancient times. Since ancient times, gold is often seen as the only currency that maintains a singular value across the world.
Its market behavior also sets gold apart from other precious metals. People's practice has always assimilated those to commodities. Whereas the price of gold is a sensitive mirror where people's degree of trust in currency is reflected. If economic conditions induce a more accentuated mistrust in reference to "paper" money, then gold price starts rising.
As today's context is one of ongoing financial tensions threatening to develop into a general currency crisis, gold is behaving very much as one would expect it to. in the last decade gold price has undergone constant appreciation. there has been only one interruption to this trend, in 2008.
In 2008 investors grew nervous because of the 30% fall in gold price because it came very abruptly, but that situation quickly passed and appreciation followed. By the end of 2008 gold price has appreciated 5% overall. And after that, in less than 3 years, gold price has appreciated a staggering 170%.
The bull market phase produced no surprise at all until September this year. Not even the 16% downwards correction which occurred in the market at that time was not a true surprise, as analysts have been expecting a market correction for some time. In comparison to past bull markets for gold, this correction is mild. Further corrections expected are also said to leave the situation of the market unchanged. We still have a bull market for gold.
Analysts now encourage investors to focus on strategies that facilitate accumulation. Shorter time investors are interested in investing in physical gold like bullion coins and bars, or in "Paper" gold like EFT's. Either way, they are encouraged to make gradual purchases during the next few months in order to obtain good average prices.
Gold hedge funds are the best option now for those investors who perceive investments as a form of financial insurance and are therefore looking for longer termed investments. Physically allocated gold, the primary form of investment i the case of gold funds, is deposited in the secure vaults of a top bank. As forms of financial organization, gold funds typically can offer positive returns on investments, irrespective of the overall performance of the fund.
Its market behavior also sets gold apart from other precious metals. People's practice has always assimilated those to commodities. Whereas the price of gold is a sensitive mirror where people's degree of trust in currency is reflected. If economic conditions induce a more accentuated mistrust in reference to "paper" money, then gold price starts rising.
As today's context is one of ongoing financial tensions threatening to develop into a general currency crisis, gold is behaving very much as one would expect it to. in the last decade gold price has undergone constant appreciation. there has been only one interruption to this trend, in 2008.
In 2008 investors grew nervous because of the 30% fall in gold price because it came very abruptly, but that situation quickly passed and appreciation followed. By the end of 2008 gold price has appreciated 5% overall. And after that, in less than 3 years, gold price has appreciated a staggering 170%.
The bull market phase produced no surprise at all until September this year. Not even the 16% downwards correction which occurred in the market at that time was not a true surprise, as analysts have been expecting a market correction for some time. In comparison to past bull markets for gold, this correction is mild. Further corrections expected are also said to leave the situation of the market unchanged. We still have a bull market for gold.
Analysts now encourage investors to focus on strategies that facilitate accumulation. Shorter time investors are interested in investing in physical gold like bullion coins and bars, or in "Paper" gold like EFT's. Either way, they are encouraged to make gradual purchases during the next few months in order to obtain good average prices.
Gold hedge funds are the best option now for those investors who perceive investments as a form of financial insurance and are therefore looking for longer termed investments. Physically allocated gold, the primary form of investment i the case of gold funds, is deposited in the secure vaults of a top bank. As forms of financial organization, gold funds typically can offer positive returns on investments, irrespective of the overall performance of the fund.
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Investors seeking protection of their capital against the potential erosion of the purchasing power of flat paper money can preserve it in gold with the Hinde Capital gold funds.
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