Gold is the Standard

Some notable economists are predicting that the sky is in the process of falling on America.  The German decision to remove its gold bullion from the U.S. federal reserve, and place some in Frankfurt, is thought by some experts to indicate that the economic atmosphere of America is about to become lethally polluted.

The conclusion of various economists is that an investment in gold bullion or coins may be a means of bypassing a possible U.S. economic meltdown.  Certainly no such downturn has occurred.  And while America may float away on the wings of oblivion, it is more plausible that the golden nation of America is here to stay.

Golden Security 

Gold bullion as an investment is more popular than ever.  The increased trading activity in precious metals such as gold, is due mainly to the ebb and flow of the world economic condition.  Hot spots, including the monetary debacle of Cyprus, bring economic uncertainty to the fore.  The European Union has to date had the wherewithal to absorb the vast financial difficulties arising in one country or another.  However, the world is a unity.  Economic failure in one nation, or in a whole continent for that matter, places the remainder of the globe’s citizens on notice of their own monetary fragility. It is specifically this economic uncertainty which has resulted in heightened investor interest in gold coins and bullion.

China and its Gold

Of interest to many international experts is the hoarding of gold by China.  The gold reserves of the Chinese government include both that which is continually being mined and the significant amount of gold that China is importing.  Speculation abounds that China plans to release its trillion dollars worth of U.S. Treasury securities in favour of the establishment of its own currency, backed by the huge gold reserves being accumulated.

Regardless of the actual purpose behind China’s substantial collection of gold, the international lesson is there to be learned by investors around the globe.  The eternal value of gold makes this asset a secure investment.

Diversification has always been the name of the game

Leading economists  have continually advised that investors diversify. The portfolio resulting from that essential diversification may include any number of the many assets offered through the world of trading, such as stocks, bonds, binary options, currencies, and precious metals.

For those investors who have the inclination to dabble in high-risk markets, binary options are attractive.  The options present the simplicity of a two-tier decision:  Upturn, which is a Call; or Downturn, which is a Put.  Many investors find the easy four-step process of binary options to fit the fast pace and challenges of the today lifestyle.

Global economic growth

The economic growth of any country is determined by two primary factors:  How much the country invests and the efficiency of that investment in creating growth.  China has long been touted as the world’s emerging financial superpower.  However, analysts have noted that China’s economy is consistently too slow.  Further, China has been hindered by the economic stagnation continuing throughout the world.

Economists note the relationship between the interest rate and gold.  As the interest rate drops, the price of gold generally rises.  Gold bullion and coins comprise the traditional investment in this precious metal.  With 46 million troy ounces in use, the Krugerrand is by far the most actively traded gold bullion coin. 

Gold is the most popular of the precious metals investments.  Gold has historically become the focus of investors during challenging political, economic and social crises.  The current worldwide economic stagnation is again opening wide the market for gold.

Posted On 15 Mar 2011

, By marcus

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