Investing
Gold has been used as a form of money, in one form or another, at least from 560 BC until the end of the Bretton Woods system in 1971. It was used as a store of value both by individuals and countries for much of that period. In recent times gold has a lesser role as a form of currency. It is still considered by many as a store of value and a safe haven in times of crisis.Central banks are believed to retain large Gold reserves. Gold and other precious metals are assets that are both tangible and liquid (i.e. easily traded), unlike real estate which is tangible but not liquid, or company shares and bonds which are liquid but not tangible. If you buy gold coins they may be included in portfolios as an insurance against unforeseen calamities which may affect the price of other investments negatively.From the perspective of a currency trader, one can view Gold as simply another form of currency and that buying Gold is a process analogous to currency speculation.

Posted August 11, 2010
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