Invest in Gold

If you have extra cash  and wish to invest it safely and securely, then your best option is to invest it in gold. You should not allow the high returns that the stock market provides over a short period to lure you. Only those who have an extensive knowledge of stocks manage to earn money from it. They do so at the risk of others who end up losing their principal amount. Investing in gold bullion protects your hard earned money from the fluctuations of the stock market.

The price of gold has been fluctuating a bit in the past few months. However, if one studies the rise in price of this precious metal in the past few years, they will discover that gold bullion has provided investors with a much higher return on investment. This is because the demand for gold is much more than its supply. The laws of supply and demand affect the price of gold. With the decline in the value of currency more people are investing in physical gold and gold EFTs. Gold also is a favorite among the jewelry and electronics industry. Since gold does not corrode easily when exposed to the air, it is the preferred choice of metal used for plating connection points by the electronic industry.  

The jewelry industry prefers electroplating their ornaments with gold. This allows them to create jewelry that appears to be made from pure gold, at a gold price that is much lower than that of the precious yellow metal. The number of electronic and jewelry industries are on the rise. This increases the demand of gold. However, the amount of gold mined is not increasing in the same proportion. It is due to this that the price of gold has shot up in the past few years and will maintain its pace in the future.

Several banks collapsed in the aftermath of the financial economic crisis that first reared its ugly head in the first quarter of 2008. Those who had invested their money in term deposits in those banks have had their savings wiped out. However, those who had invested their money in gold bullion did not face this predicament. Here are some additional reasons why you should opt for investing in gold bullion. The price of this metal has escalated by nearly 1769% in just 40 years. No other investment had provided this scale of return over the same period. Investing in gold bullion makes sense, since it provides safety to your investment.

Since it is always in demand, you can sell a part or the entire lot of your gold whenever you need cash. However, it is important that you exercise care while purchasing it. Make sure that you purchase from reputable sources. Be extremely careful if purchasing gold from online stores. It is better to purchase this yellow metal from national mints or reputable jewelry companies. This way, you can rest assured that there will be no compromise on the purity of gold. You can also opt for investing in gold bullion by purchasing popular gold coins such as the American Gold Eagle, the Krugerrand, and the British Sovereign etc. Fight inflation and increase the value of your investment by investing in gold.

Author: David Kennedy Google+