With the languishing financial situation worldwide, money, stocks and bonds have lost ground in favor of commodities.
Large use goods like oil and gas still remain powerful investments opportunities, but, likewise imply greater risks as they are largely conditioned by the socio-economical and Geo-political factors. Under these circumstances, people turn to the genuine value of precious metals and, especially to the world-old trustworthy gold.
Nowadays, gold is largely considered the most secure asset. The central banks of the world, governmental reserves, large and small investors alike trust in this yellow glittering metal whether as a safe haven or sheltered investment. Although its recognition was not always as widespread as these days, gold has preserved at all times its purchasing power and unique capacity of storing value throughout troubled or peaceful times.
Nonetheless, there is a wide variety of gold investments on the present-day market. Investing in gold bullion bars and coins or in gold stocks are the best known and used means. To make things clear, there is an essential difference between investing in the metal in raw form (i.e. gold in bullion) and in gold mining shares. This variation translates into the basic disparity between the pair of concepts stability -solid value and, respectively greater risks – increased gains.
In other words, purchasing gold bullion coins and small bars represents the secure means for acquiring and preserving wealth. Their worth resides in the purity of the metal (99,9% being the best available) and its mass. On the other hand, the price of a gold ounce is directly connected with the inflation / deflation indexes and the balance between supply-demand. This means that whether the fiat value is losing power or gaining in popularity, you can rely on your gold possessions in any case.
The gold stocks are practically an investment in the business of the precious metal, which consists mainly in gold mining. Indeed surprisingly, the worth of gold stocks these days is up to a percentage of almost 500% in comparison with their outlay three years ago. Thereby, gold shares are rather a volatile domain that primarily addresses the expert financiers, who are in permanent liaison with the existing and prospect trends on the global gold market and, also capable to assume potential larger losses.