Gold Has Kept Its Value Despite The Recent Issues

By John Henion

Poor policy making and floating currencies are open to instability, but gold's value is independent. As national currencies swing in value wildly, the real worth of gold in your portfolio becomes apparent. While a devalued currency can positively impact international competitiveness, it increase the cost of imports and makes the net holdings of bank savings by citizens worth less. Gold then becomes a counter-measure as investors and countries buy gold at spot price to protect themselves from instability.

So I think you'll agree that there are so many advantages to considering gold as part of your investment portfolio if you're a sophisticate investor with aspirations for creating true wealth. Whether you're considering becoming a long term investor in gold, interested in perhaps making quick money on a day by day basis, or interested in "hedging" against future price falls, now is a great time to research gold as an investment. Having an investment plan and strategy for the assets that you are holding is a fundamental requirement to acquiring wealth. Before adding anything to your mix, make sure it fits with that plan.

The paper money you carry in your pocket essentially has no value other than the one we all agree to give it. If there are substantial political changes or economic uncertainties, then what that paper might actually be worth can vary dramatically. When these situations arise, gold becomes invaluable. Gold becomes more scare and more valuable as the value of paper money diminishes. If trading partners stop accepting the promises of a government, then usually those trades go back to using gold.

All the things we value about gold - it's rarity, softness, resistance to erosion or tarnishing - make it a highly unique precious metal. Precious metals are by their nature less reactive than most elements, and gold is no exception. It is understandable that people in classical times believed that gold was a gift from their gods. Prized for its beauty more than its monetary wealth, gold only became a type of currency in the Classical Period. It is interesting to think that the majority of the world's gold has been re-used. In fact figures show that one third of the gold on the market today has been re-used.

It would be fair to say that gold, along with the other precious metals found by ancient man, helped to create art and culture and enlightenment. Gold still holds is mystique even a millennia after early man first laid eyes on it. Gold's significance in many theocracies across many different cultures is highly unique. It is a symbol of wealth and power in virtually every culture that has ever existed. While our modern religious practices don't necessarily value gold as highly, our popular culture's opinion of gold has not decreased.

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