Sunday, August 15, 2010
Gold doesn't inflate
I'm in my final year of school at a prestigious university studying economics (had a minor in mathematical finance - dropped it), so you may be thinking I have a bit of "know how" and expertise when it comes to global markets, finance, the economy et cetera. Truth is, i don't. What i do know, is that the more money that is issued, the less your money is valued. Inflation is the systematic increase of prices (sometimes due to excessive money, either from printing or other activity). When inflation increases, your money has less power, your wealth is somewhat compromised. When this happens, the value of Gold SKY ROCKETS. But not just gold, other precious or semi precious metals such as silver also increase in value. Gold is a good investment because it comes from the earth, and is relatively unrenewable (like diamonds.. but thats a stretch). Therefore, because of how rare it is, its value stands to increase more than it does decrease. If you have money in the bank, (money that you can afford to gamble with), BUY GOLD. It will not let you down unlike the stock market or currency trading. Whatever you choose to invest in, silver or gold, both commodities are issues in coin or ingot, that is - silver ingots of pure bullion or gold coin
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