Sir John Templeton once quoted, "Bull markets are born on pessimism, grow on skepticism, mature on optimism, and die on euphoria. The time of maximum pessimism is the best time to buy, and the time of maximum optimism is the best time to sell." Sir John Templeton was an American-born British stock investor and mutual fund pioneer. The bull market he was referring to are investments that increased over an extended period.
The term "bull" is also a term that refers to the investor who perceive that a certain market in going to go up. In the recent years, we see how gold affects the international market. At the first period of a gold bull market, the value of gold hikes up because of currency devaluation. At the second period, prices of gold still grow due to the increased investment demand. During these first two periods, the gold bull market can offer profitable returns. As projected, in the third and final period, investors are made instant millionaires. These days, the value of gold is still on the rise. Having that said, experts recommend investing in gold now. Are you still not convinced? Following are the excellent reasons why you should start your gold portfolio today.
Gold Protects You Against Inflation
Inflation happens when there is a rise of the value of goods and services in a certain place and time. When there is a price hike, the unit of currency buys lesser commodities and services. There will be a wearing down of the purchasing power of money. Another possible reason why there is a drop in currency is the printing of too much money around the globe Gold, is different. It is independent from any administration. Its purchasing power has been stable over the long term. If you are familiar with "fiat" currencies, all of today's other currencies like the dollars, euros and yen belong to this group. It only means that they do not characterize anything physical but only are worthy because of the governing law or decree of the country it is used.
Inflation happens when there is a rise of the value of goods and services in a certain place and time. When there is a price hike, the unit of currency buys lesser commodities and services. There will be a wearing down of the purchasing power of money. Another possible reason why there is a drop in currency is the printing of too much money around the globe Gold, is different. It is independent from any administration. Its purchasing power has been stable over the long term. If you are familiar with "fiat" currencies, all of today's other currencies like the dollars, euros and yen belong to this group. It only means that they do not characterize anything physical but only are worthy because of the governing law or decree of the country it is used.
One Of Its Kind
Certainly, there are many other precious metals out there. However, gold is different. It is a rare commodity. It is approximately five parts for every billion of the earth's crust. It is not easy to find and it can be very expensive to mine. The number of mined gold has dramatically slowed down, infrequently more than 2% annually.
Certainly, there are many other precious metals out there. However, gold is different. It is a rare commodity. It is approximately five parts for every billion of the earth's crust. It is not easy to find and it can be very expensive to mine. The number of mined gold has dramatically slowed down, infrequently more than 2% annually.
Diversify Investment Portfolio
Investing includes risks. Not all investment are successful some are doomed to fail. The main goal of diversification is to reduce the possible risk of investment. It also helps grow wealth. Diversifying your portfolio can be done within the same category or outside the category. Within means you are venturing on the same type of vehicle. Say you are investing in precious metals, you can diversify by adding gold, silver or platinum in your portfolio. Outside diversification is adding different types of vehicles. For example, precious metals and stocks.
Investing includes risks. Not all investment are successful some are doomed to fail. The main goal of diversification is to reduce the possible risk of investment. It also helps grow wealth. Diversifying your portfolio can be done within the same category or outside the category. Within means you are venturing on the same type of vehicle. Say you are investing in precious metals, you can diversify by adding gold, silver or platinum in your portfolio. Outside diversification is adding different types of vehicles. For example, precious metals and stocks.
Ownership
If you are the type of investor who wants to have a physical hold of your investment, then gold is the one for you. There are many ways to invest in gold. You can choose to invest in bars, bullion, coins and jewelries. Jewelries are the most common types. It comes in chic and glamorous designs. If you are bored with your gold jewelry, you can sell it and buy new designs on the market.
If you are the type of investor who wants to have a physical hold of your investment, then gold is the one for you. There are many ways to invest in gold. You can choose to invest in bars, bullion, coins and jewelries. Jewelries are the most common types. It comes in chic and glamorous designs. If you are bored with your gold jewelry, you can sell it and buy new designs on the market.
Gold indeed is a very powerful investment. It is different from fiat currencies that are affected by economic and national threats. If you are thinking of investing, try gold and learn how you can maximize its value.
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Article Source: http://EzineArticles.com/?expert=Joseph_C_Ford
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