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What is gold?
Gold is a solid, shiny and the most malleable metal known. Generally, gold can be found as grains or nuggets in rocks, alluvial deposits and veins. It has been a valuable and highly wanted precious metal for investments, jewelleries, and other usages since thousands of years. The world consumption of gold today consists of 50% in jewellery, 40% in investment and 10% in industry.
Gold was the most common form for trading purposes throughout human history before it was widely replaced by fiat currency i.e. US dollar, Euro and Pound in the late 20th century. At times during world crisis, be it a war or an economy downturn like the recent Greece’s debt crisis, gold will have a huge come back and you may wonder why. Read on.
Hedge against Inflation
Gold has always been rare but stable. Since gold mining process is tedious and a huge amount of time is needed, gold price tends to stay roughly constant for centuries. Unlike fiat currencies, gold is not controlled by any government laws and therefore the price does not fluctuate drastically. Today, gold is not only a form of trading tool which is widely accepted globally, its value has been increasing so rapidly, some may consider it as one of the fastest appreciating assets you ever owned.
True Facts about Gold
As of 2009, a total of 165,000 tonnes of gold have been mined in human history. This is roughly equivalent to 5.3 billion troy ounces or about 8500 m3. Expert estimated the total gold available in the world is 205,000 tonnes, which means there are only 40,000 tonnes left un- mined.
The demand of gold these days has become so great, everyone in the world wants a piece of it. Many central banks worldwide bought up tonnes of gold, gold trading companies setting up and jewellery retailers are offering more bullion plans to encourage investments in this evergreen hard asset which may go extinct in the year 2025!
Gold, a high liquidity asset is a physical investment which you can own it instantly and provide you and your next generation with peace of mind. Whenever, wherever.
WHY SILVER?
Like gold, silver was used as a form of currency until 1970’s. In the past, traders and investors determine the value of silver against the value of gold according to 1:15 ratio. For instance, each ounce of gold in the market could buy you 15 ounces of silver. As of 2011, 1:15 ratio has revolutionized to 1:53, with gold price of USD1645.44 per ounce against USD30.67 for an ounce of silver.
Since the global economy crisis in early 2011, silver price has increased tremendously, gaining more than 100% of its value within one year, from USD11.78 to USD30.67 per ounce. Through market speculations, silver price may grow further due to increasing demand from various industries and consumers e.g. construction materials and medical equipments.
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