Gold to Remain Higher on Its Inherent Value

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Gold is a precious
metal commodity which avails the direct result of the global GDP.
The whole world works to elevate the prices of Gold in the longer
run. On the speculative domain, Gold being the real indicator of
value cross sustains the pitfalls of other securities, financial
tools and currency devaluation.

This cost sustained
behavior in shorter run transcends into the gain as the opportunity
cost of all other economic activities. For one thing remains sure
for Gold, no one can control or lead the prices of gold in any environment
or time. The reason is simple while the inferior policies governing
financial tools such as stocks, bonds and currency lose their value;
Gold remains intact only to gain with the deteriorating outcome
of these tools.

The only direct
impact gold really can exhibit is when the GDP of the world declines
and gold then exhibits correction (which it had gained against the
poor trail of other financial tools). The truth remains that gold
has the real inherent value which has continued to grow powerful
over the period of time.

The Trail
of Stocks vs. The Rally of Gold:

Stocks are
reliant on the constant activity or transactional trades. Stock
brokers are more interested in making commission out of their speculative
advice. That is, their policy is based on the principle of “more
trades better the turnover”; for gold it is aptly contrary
because if you sit on gold- better, and if you lose on speculative
price correction, you can still wait for the prices to appreciate
back to its actual. The gold formula is thus based on the global
productive efficiency, if you own gold you must know- the whole
world is working for you. They are always geared to work harder
and smarter than past; thus they are working towards pushing the
prices of gold to the next level, consistently.

International
GDP vs. Independent Corporate Decisions:

International
GDP is the production possibility frontier of the whole world, which
is reliant on nothing else but the operational conditions on the
economic front. Gold on these grounds remain oblivious of other
economic (governmental level) impacts and thus represents globalized
(true) performance capacity. On the other hand if we study the trading
activities of stocks or bonds-the recent global meltdown provided
numerous examples where bonds and stocks failed immensely and gold
got privileged (and capitalized) because of their loopholes.

It’s a
regular question by potential investors – “Where to put
the money?” Stocks or Gold. Our comparison would tell you the
story in a profound yet simple manner.

A potential
investment in Gold in 1999 of US$ 10,000 would have elevated to
US$ 38,000 by 2009. That’s a marked increased in from of 283%.

A careful evaluation
and cautious estimate of the same in stocks would have deteriorated
by US$ 1,400. A loss of 14%.

The above analysis
is in a situation where other influencing factors in the environment
remains constant such as currency and fiscal policies. Gold as we
know is not affected much by anything else but its intrinsic value
(it’s not someone else’s liability) and thus displays a great depth,
for investors as well as speculators (around the shortcoming triggered
by regulators of other financial products).

Whether it
is a new legislation by FED or a war hastening the stock market;
gold pertains only to the global economic outlook of productivity.
Because where you see a deteriorating economy tarnishing the value
and purchasing power of dollar, you’ll see Gold profiting through
the early recovery and full throttle economic activity on various
fronts of multiple economies which are oblivious of US fiscal measures
and its corresponding amendments. Infact be it Euro or Dollar they
(emerging economies) are capitalizing on the mistakes of big wigs
and adding on their reserves as their consequent focus on Gold.

Financially
Educated Class Trusts Gold:

“This
system that we have since 1971 is non-viable, that’s what this
whole story is about” says, Ron Paul congressman from Texas.
“I’d rather be early than late, you know, I got worried
about this in 1971, when Bretton Woods broke down,” he explains.
“When your theories are right you never get hurt,” Ron
warns.

“I have
got literally thirty seconds left, and in these thirty seconds will
you give our viewers investment advice, and is that investment advice
to buy gold,” newscaster Fox Business Varney & Company
provoked Ron.

“I just
tell you what I do, I think gold is good insurance policy (against
inflation) and I personally buy my gold to protect my family.”
Ron proclaimed.

Gold is a long
term securer for your long term commitment that is family. Congressman
Ron Paul is considered an authority in economics, governmental regulation
and policies analyst. Being the most financially educated and aware
as he is, he suggests general public to invest in gold.

“A RECIPE
FOR DISASTER? The global economic and financial market climate looks
increasingly precarious. Financial imbalances have never been greater
following an extraordinary period of easy money. Many countries
have experienced housing bubbles and massive increases in leverage,
and global trade imbalances are at unprecedented levels. Rising
U.S. interest rates and high oil prices now threaten to push the
system to a breaking point.” (BCA Research)

Economic
indicators why Gold Rally is better than Stock Trail:

Insurance against
inflation
Insurance against currency devaluation
Optimal security against geo-political and financial market instability
Independently based on its own demand and supply
Inherent intrinsic value
Portfolio diversifier & stabilizer
No other commodity, financial product or tool can provide this level
of composure with respect to your present and future, referred on
the past of consistent soaring over the period of time.

Gold in
comparison with other precious metals:

There is a
huge gap between other precious metals such as silver (actually
silver is an exception to some extent here because of its monetary
history), palladium, platinum, copper and gold. The reason is simple
and the reason is all other metals are produced for consumption
in their related industries while gold is produced comparatively
more for accumulation, the higher graded relative justifier of worth
against value. The demand of all other metals fluctuates on the
basis of their demand in their respective industrial applications.
Gold’s movement is not primarily based on its usefulness or
principal demand in industrial or consumable applications. Its monetary
worth is fundamentally a constant for worldwide demand of stored
value.

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the rest of the article

May
27, 2010

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