Gold has always been the ultimate asset. It is more than just a commodity; rather it is the ‘real currency’ which evolved over 5000 years ago. Gold is also referred as the ‘crisis commodity’ with people hoarding up gold in times of economic crisis as well as geo political uncertainties. However the previous year hasn’t favored gold much, and consequently the investment sentiment have decreased substantially. Because of this hammering of gold in the year 2013 , there is a general perception that things will continue going downhill and the yellow metal will lose its value over time. However the experts beg to differ at this juncture. Gold proponents argue that this was just a ‘correction phase’ which fortunately enabled many people to enter the bullion market and that the value of this yellow metal will soon revive. Following are the five reasons why experts believe that investing in gold in the year 2014 is a good bargain.
REASON NO.1: A PEEK INTO THE REALITY OF GLOBAL ECONOMIES
Experts claim that gold went down the value chart because of a mistaken belief that the world economy is improving. However the reality is in contrast to this. Global economies are continually stacking up gold. Investing in gold this year would turn out to be very profitable in the long run, because when the current activity of relentless money printing boomerangs, it will be the yellow metal that people will desperately try to get hold of.
REASON NO.2: FOLLOWING THE STEPS OF ASIAN COUNTRIES
Countries that have a shrewd look out for the future have realized the call of the time and are stacking up on gold reserves. Turkey imported more than 300 tons of gold in 2013, a staggering 23% increase from 2012. China, where gold holds significant social and cultural value, bought a record 2,200 tons of gold in 2013. Other important economies that stacked up on gold when the mainstream outlook towards gold was bearish were Russia and South Korea. Following this trend, it is a very good opportunity to invest in gold now and yield the amazing profits later on.
REASON NO.3: GOLD IS THE ALTERNATIVE COMMODITY TO NON-CONVERTIBLE PAPER MONEY
Gold is a very potent long term investment, especially in the current scenario where the central governments are expanding paper money to accommodate the deficits of profligate governments. However the catch here is that they cannot print gold. Interestingly the credit crisis has led to the ‘invention’ of $10 trillion worth of new currencies. They are trying to keep the countries afloat by buying up government debts so that the interest rates can be decreased. This can only buy them time, as the situation can in no way improved by this strategy.
REASON NO.4: WEAKNESS OF THE US DOLLAR
Undeniably, US Dollar is the most significant of world’s reserve currencies. But when its value falls down, people flit to the security of gold. This is not a hypothetical situation. Its value did decrease between the years 1998 to 2008 as statistics can sufficiently prove. This led to the tripling of gold’s value between the years 1998 to 2008, which again doubled during the years 2008 to 2012. So 2014 is a golden opportunity for all aspiring investors to invest in this yellow metal; because when the dollar goes down, their profits will undoubtedly boom.
REASON NO. 5: THE BOTTOM LINE
You ought not to hesitate in investing in gold this year, if you had any plans to, because its prices increase when paper investments such as stocks and bonds decline. Moreover it is a hedge against inflation and erosion of major countries. Therefore it’s time you make use of this opportunity to enter the bullion market and ensure a long term profitable investment.