Gold and the country’s economy are intertwined and play a significant role. It has a significant impact on the economy right from the gold standard to its price. In short, it determines how safe all of the other investments are. It affects the waxes and wanes of the economy and when other investments seem to be too risky gold acts as a good hedge. In fact, the health of an economy is determined by the prevailing price of gold in that country. When a country is on the gold standard, there is a greater importance of the precious metal.
History Of Gold Price
In the ancient times, gold was used as an official coinage replacing the age-old barter system for trading goods and services.
The value of gold is recognized and gold jewelry came into existence as a worthy tool to measure the country’s strength, both financially and physically. Add to that the beauty, malleability and luster of gold have facilitated in many uses of it. Gold was started to be beaten into leaf from the days of the Egyptian pharaohs. As recorded in history, gold was first used as money in 643 BC and in 30 BC the Roman Emperor Augustus first set a price for gold at 45 coins to the pound.
Burst Of The Bubble
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The value of gold has steadily increased after that and it fluctuates frequently and peaked in 2011, though the experts and jewelry buyers NYC suggests that it will fall in the recent years. Gold is supposed to be the ultimate bubble. It is often argued that gold unlike any other stock even real estate and company stocks readily lent itself to speculation. This is due to the fact that it has very little intrinsic value by itself. This means the apparent rise in gold price in 2011 is simply a sign of an asset bubble that will burst soon.
ReasonsTo Invest In Gold
If you know the right time to invest in gold, you must do so if you want to earn some money in addition to your original income. However, you will also need to know the right ways to cash on your gold jewelry. The reasons you should invest in gold is that it will offset the stock market declines and counteract with the declining dollar during financial situations. It will also act as a perfect prevaricate against inflation. That is why most investors think gold to be the safest form of investment which has more highs than lows.
Know A Few Facts
Before you buy gold there are a few facts to know. You should not invest in gold by merely looking at the high prevailing price of it. You must first determine how good a candidate you are to buy gold and whether you have enough money to counter the ups or downs that may last for years at a stretch. You never know when the boom will turn into a bust and higher the price, riskier it is to invest.
Trudy is a Business Tech Analyst. He is very responsible towards his job. He loves to share his knowledge and experience with his friends and colleagues.