Why Gold Currency Serves As Great Hedge in Times of Crises

People easily overlook one aspect of gold when comparing gold bullion to stocks. This article is about appreciating gold at its true value and discusses why it makes good economic sense to buy gold for the use as gold currency.

In these times in particular it’s crucial to be clear about your investment options. The recent global financial crisis has hit hard and the troubled US economy and the horrendous state deficit of estimated 14 trillion US dollars by the end of 2010 call for a more defense investment strategy.

In times when the return on real estates, bonds and equities does not adequately compensate for risk and inflation and with the next crisis being anticipated, the demand for gold as well as other commodities increases. Therefore it doesn’t come as a surprise that nowadays gold is talked about on all channels.

Back in May 2003 gold was trading at just $ 350 an ounce and as of February 2010 the price shot past $ 1100 and many analysts predict that gold will reach $ 2000 per troy ounce and higher. Does this mean that now is the time to be invested in gold?

This brings up the question, why would you want to be invested in gold in the first place? If you consider investing in gold for profits, you should keep in mind, that gold is quite a volatile investment. You risk getting into the game late, ending up buying high and selling after gold declines.

However, there is another aspect to gold that is totally overlooked when you’re being focused on the anticipation of profits: To preserve your assets with the precious metal gold that doesn’t know any crisis, never loses its value and has no maintenance costs.

Gold bars have served mankind for 2600 years worldwide as gold currency and as conservation of assets. That’s why gold has been attributed invaluable through the ages and will continue to be in the future.

With the thread of inflation, a staggering state deficit, economical and political uncertainty, common sense alone should tell you that it would be wise to focus your investments on tangible assets rather than shares – not for profits but to preserve your assets of today.

Many are viewing the recent economic and financial crisis to be just a foretaste of what is to come. If you want to be prepared you should consider to buy gold as a hedge or save haven against times of crises, be they economic, political, social or currency based.

We live in a time of unrest. We face inflation, wars, burgeoning national debt, currency failure, investment market declines and maybe even social unrest. If you are aware of these challenges, the question is not whether or not to buy gold. The question is rather what kind of gold to buy.

Unless you have spates to spend the best option is bullion gold bars in as small increments as possible, like 1gramm gold bars – or even o,5gramm gold bars. In case of the worst scenario with banks closing down and paper money being hyper-inflated these 1gramm bars serve perfectly as gold currency in any kind of setting.

The mini gold bars are universally and hassle-free usable and you remain capable of acting at all times. With them you truly hold the world’s oldest and most constant currency throughout history: the gold currency.

The true value of gold will be appreciated the most in times of crises. Having some gold currency [http://www.thegoldcurrency.com] as part of your savings will put you on the safe side at least money wise.

Article Source:
http://EzineArticles.com/?expert=Walter_Baer

July 13, 2011 – Congressman Ron Paul questions Federal Reserve Chairman Ben Bernanke in a US House Financial Services Committee Meeting shortly after reports surfaced that the Federal Reserve was preparing for a third round of quantitative easing. Click on the following link for analysis from Campaign for Liberty: www.campaignforliberty.org
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