Gold
Overview »
Gold has been considered one of the most precious metals, and its value has been used as the standard for many currencies as civilizations and empires have risen and declined.Historically gold was used to back currency; in an economic system known as the gold standard, a certain weight of gold was given the name of a unit of currency.Due to its rarity and durability gold has been used as a method of payment because of its unique properties.
Investment - why? »
The real value of gold is not that it provides a quick, speculative fix, but that it can provide a sure and steady means of protecting wealth and enhance the consistency of returns. With gold's role as a portfolio diversifier, a hedge against inflation and exposure to the dollar, there are several compelling arguments for investing a portion of one's portfolio in the yellow metal.
Portfolio Diversification
Most
investment portfolios
are invested primarily in traditional financial assets such as stocks
and
bonds. The reason for holding diverse investments is to
protect the
portfolio against fluctuations in the value of any single asset class.
Portfolios that contain gold are generally more robust and better able
to cope
with market uncertainties than those that don't.
Adding gold to a
portfolio
introduces an entirely different class of asset. Gold is unusual
because it is
both a commodity and a monetary asset and is an effective diversifier
because
its performance tends to move independently of other investments.Independent
studies have shown
that traditional diversifiers such as bonds often fail during times of
market
stress or instability. Even a small allocation of gold has been shown
to
significantly improve the consistency of portfolio performance during
both
stable and unstable financial periods. Gold can improve the
stability and
predictability of returns. The performance of gold is not correlated
with other
assets because the gold price is not driven by the same factors that
drive the
performance of other assets.
Inflation
The purchasing power of gold has not diminished since Biblical times. According to the Old Testament, during the reign of King Nebuchadnezzar, an ounce of gold bought 350 loaves of bread. Today, an ounce of gold still buys 350 loaves. The value of gold therefore, 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. There is a growing body of research to bolster gold's reputation as a protector of wealth against the ravages of inflation. Market cycles come and go, but gold has maintained its long term value. So gold is often bought to counter the effects of inflation and currency fluctuations. In fact extensive research from a range of economists has consistently shown that, in spite of price fluctuations, gold has consistently reverted to its historic purchasing power parity; and during periods of financial, economic, and social turmoil, gold has been a safe refuge when the value of other assets was all but destroyed.
Investment - how? »
You can invest in GMI with minimum initial
investment of €
1000.
The
minimum interest of your investment is 9 %
monthly.