Gold has rich history and value. It is known well and respected throughout the globe. As centuries go by, people keep using gold for different reasons. In this modern time however, economies and societies have given so much value on gold.
As a result, it has perpetuated its value and worth.
Start of Something New
Historically, gold has been a remarkable tool in battling inflation. This is due to the reason that gold’s prices have the tendency to increase when standard of living as increases as well. For the past half century, investors have seen how the prices of gold rise up and how the stock market dwindled throughout inflation.
Deflation is considered as the period to which a price decreases. When the economy is challenged and there’s slow progression in business activities due to excessive debt (first felt on 1930s during the Great Depression).
The Growth for Gold’s Demand
For the past several years, there’s been an increase in wealth of the emerging market economies. This has remarkably boosted the demand for this precious metal. In most countries, gold has an impact on its culture. In fact, one of the biggest gold-consuming countries in the world is India. As a matter of fact, the interests among investors for gold have grown as well.
Many of these investors are starting to see commodities especially gold as another category of investment in which funds must be allocated.