Inflation: The Guest That Won"t Leave
Inflation is characteristic to the economies based on paper currency.
Countries whose economies are supported by no physical commodity are typically the most affected by such a phenomenon.
This is because the value of paper-based currency is given through government regulation or law.
When inflation appears, money start to lose their purchasing power.
As a consequence, people are able to buy fewer goods and services with each unit of currency, which, in turn, generates the need for a great supply in paper money.
Consequently, governments have to issue more currency in order to compensate somehow for this loss of real value.
But, on a long term basis, such a situation can only lead to major economical devaluation.
The good news is that the negative effects of inflation can be counteracted through the purchase of gold.
The prices of this yellow metal tend to increase significantly whenever the value of paper-based money declines.
It has been proven over the years that, in spite of major changes, gold retains its power of purchasing real goods and services.
In addition, the defensive power of gold has effect not only internally but also externally, fighting against the depreciation of other currencies as well.
This is precisely why most of the investors regard gold as a sort of inflation hedge.
Being aware of this looming threat, they decide to diversify their assets portfolio through the addition of this precious metal.
Gold investment can have major advantages.
In many countries, including the whole of the European Union, people who purchase gold for investment purposes need not pay a Value Added Tax for that amount of gold.
Therefore, if you want to escape the dark financial times that lie ahead of you, start investing in this glittering metal.
There are various ways through which you can do this.
One of the most popular is the acquisition of gold bullion coins.
Such coins can be typically used as a store of value and their evaluation is made by taking into account their fine gold content.
If you want to sell them, you can do this for a premium over the market price of the metal on the exchanges dedicated to commodities.
It is important to learn how to differentiate gold bullion coins from commemorative or numismatic coins.
The latter are evaluated by different criteria such as rarity, design and finish.
Gold bars are another way by which you can acquire relatively small amounts of gold.
The latter can be found in a range of weights and sizes and can be sold without major difficulties, usually over the counter of the major banks.
Manufacturers produce standard gold bars in over 400 types and all of them normally contain a minimum of 99.
5% fine gold.
Other possibilities of gold investment include online accounts, exchange traded funds, gold certificates as well as gold mining stocks.
Irrespective of the form under which it is bought, one thing remains certain.
Gold has the power to protect you in front of financial collapse, political turmoil as well as other unpredictable factors.
Countries whose economies are supported by no physical commodity are typically the most affected by such a phenomenon.
This is because the value of paper-based currency is given through government regulation or law.
When inflation appears, money start to lose their purchasing power.
As a consequence, people are able to buy fewer goods and services with each unit of currency, which, in turn, generates the need for a great supply in paper money.
Consequently, governments have to issue more currency in order to compensate somehow for this loss of real value.
But, on a long term basis, such a situation can only lead to major economical devaluation.
The good news is that the negative effects of inflation can be counteracted through the purchase of gold.
The prices of this yellow metal tend to increase significantly whenever the value of paper-based money declines.
It has been proven over the years that, in spite of major changes, gold retains its power of purchasing real goods and services.
In addition, the defensive power of gold has effect not only internally but also externally, fighting against the depreciation of other currencies as well.
This is precisely why most of the investors regard gold as a sort of inflation hedge.
Being aware of this looming threat, they decide to diversify their assets portfolio through the addition of this precious metal.
Gold investment can have major advantages.
In many countries, including the whole of the European Union, people who purchase gold for investment purposes need not pay a Value Added Tax for that amount of gold.
Therefore, if you want to escape the dark financial times that lie ahead of you, start investing in this glittering metal.
There are various ways through which you can do this.
One of the most popular is the acquisition of gold bullion coins.
Such coins can be typically used as a store of value and their evaluation is made by taking into account their fine gold content.
If you want to sell them, you can do this for a premium over the market price of the metal on the exchanges dedicated to commodities.
It is important to learn how to differentiate gold bullion coins from commemorative or numismatic coins.
The latter are evaluated by different criteria such as rarity, design and finish.
Gold bars are another way by which you can acquire relatively small amounts of gold.
The latter can be found in a range of weights and sizes and can be sold without major difficulties, usually over the counter of the major banks.
Manufacturers produce standard gold bars in over 400 types and all of them normally contain a minimum of 99.
5% fine gold.
Other possibilities of gold investment include online accounts, exchange traded funds, gold certificates as well as gold mining stocks.
Irrespective of the form under which it is bought, one thing remains certain.
Gold has the power to protect you in front of financial collapse, political turmoil as well as other unpredictable factors.
