10 Reasons to Invest in Gold

Usually, when the price of gold rises, the price of the dollar falls. For that reason, investors in gold try to balance operating earnings and losses against the dollar. Also as gold tends to maintain its purchasing power over time, investors tend to buy the currency to counter the effects of inflation and changes in currency values.

The purchasing power of many currencies has generally been declining as a result of the impact of rising prices of commodities and services such as gold in the last several years. Major investors such as Jim Rogers are extremely bullish on the commodities market for the next decade to come.

Reasons to consider investing in gold.

1. Gold does not lose its value every day, like paper money. Gold is not affected by inflation or devaluation as there is a limited natural supply of the precious metal.

2. Gold is considered an investment haven. Gold has shown to performance well years of crisis or war when other investment alternatives often loss value.

3. Gold is not under political control. Governments and Central Banks can try influence prices through buying or selling of gold but that is still a free market.

4. Currently, gold reserves are limited as there is limited resources available while experiencing demand from countries such as India and China who are adding to their reserves at record levels.

5. It is an easy investment. Which is globally accepted as currencies.

6. It can be safe and profitable investment.

7. Its main use is for diversity in countries reserves. There is very little gold for sale and that accumulate as a reserve, so it is expected to increase its price.

8. Allows various forms of investment. Ingots, certificates of deposit, futures and options on gold mutual funds.

9. Gold is considered the best investment in times of crisis.

10. Do not pay VAT (Value Added Tax) on purchases (but do pay interest for paper and holding fees for physical).

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