Buy Gold - Gold vs Dollar Debate
Due to record high U.S. trade and budget deficits and declining investor confidence in U.S. bonds, stocks and currency, the dollar has been losing value, weakening its status as the world's major currency. A long-term factor behind the weakening Dollar is the widening U.S. current account deficit and many market watchers say that the Dollar is just beginning to catch up with the fact that the United States is deep in debt, a significant chunk of which is held by China and Japan. Both the Asian powers are beginning to review their entrenched positions in regard to the value of their own currencies and the mix of their foreign reserves and holdings. They are both now slowly selling off their Dollars to buy Gold.
Growing Demand and Limited Supplies
Both in 2006 and 2007, various nations around the world with Gold deposits reported lower rates of mining gold due to environmental issues, increased costs for mining, labor strikes, natural disasters and other unforeseen events. Three nations with the largest natural Gold holdings in the world South Africa, Peru and Australia have reported significant drops in their Gold mining output. Despite these substantial declines in the availability of Gold, for the last two years the greatest number of Gold buyers have come from many of the developing nations such as China and India. No doubt this trend will continue in the near future, with no end in sight another indication of Gold's growth in value.
It's all about China!
After the Chinese regime legalized ownership of Gold for its citizen in 2004, there has been an unquenchable thirst for buying Gold in the world's most populace nation. Financial analysts have predicted that China's demand for Gold is still in its infancy and once individual Chinese citizens gain more wealth in the coming years, they will purchase more Gold and as a result Gold prices worldwide will skyrocket even more. Likewise Chinese demand for Gold is expected to surpass that of India in the coming years as India is still the world's largest consumer of gold.
Central Banks (going for the Gold)
In recent years a number of central banks across the globe have begun to exchange their reserves away from the U.S. Dollar and have been buying Gold back Euros. One key country, Russia has begun to add increasing amounts of Gold to its central bank and the central banks of a number of Asian countries have pledged to do the same. With a substantial number of central banks internationally seeking Gold for their reserves, undoubtedly this growing demand will increase the value of Gold as this precious metal may become increasingly scarce.
Facts about Gold and buying Gold:
- Is considered a North Star asset because the values of all other assets rotate around Gold's value.
- Has tripled in value over the course of the past ten years!
- Is the most traded, most well known and liquid commodity in the world.
- Has in recent years had a far superior performance than the Dow, NASDAQ and S&P 500.
- Is a consistent and unwavering store of value that is not reliant on the actions of any business organizations or regime in the world.
- Is the preferred metal in which most countries in the world back their paper currency with. So if Gold is so valued around the world to protect capital, do you see why you want to place your family's wealth back on a Gold standard?
- Is and has always been a hedge against inflation.
- For the past seven years Gold has accrued between 25 to 30% per year. In essence that enables investors of Gold to double their wealth every three and a half years.
Gold's yield of return outperforms the bank!
Imagine you have $40,000 in your bank account and you buy Gold with it today, this investment would now give you the ability of acquiring five times its value-- or $200,000. Or if that same $40,000 remained in your bank account for a decade, this money would be growing at only five percent per year or which is $60,000! This is a regrettable reality.
Those investors who exchange their paper money for Gold know very well that they have not spent their funds, but merely transferred currency from a paper money that is depreciating in value to the global currency GOLD that is increasing in value everyday. This is why Gold is the perfect safety net to secure your wealth during our uncertain economic times. We at GGI know only too well how investors in the stock market have lost their savings within a matter of days and even hours. For this reason, we urge our clients to guard their hard earned wealth before it's too late! Market analysts have forecasted Gold will increase from more than $600 per ounce to $2,000 per ounce. There couldn't be a better time to purchase GOLD than now! See your wealth both protected and growing.