newsprompt.coCHEAP WOW GOLD
Gold is one of the most precious metals and its value is respected throughout the world. Like stocks, bonds, currencies, the gold market is also subject to volatility. Hence, keeping an eye on gold rates is crucial and this can be done by comparing daily charts and updates. Why is gold an important investment? Why should you own it? Here are some reasons to justify the above.
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Gold is an excellent hedge against inflation.
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Gold is universal money, a tangible store of value and wealth protection.
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You can’t go broke with physical gold
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Gold is a Liquid investment. You can turn it into cash and take the advantage of the currency difference for a profit.
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No other significant currency in the world offers any refuge.
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In times of crisis, gold bullion tends to increase sharply in value.
The daily gold prices are influenced by numerous factors. The most important ones include:
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Demand and supply of gold is an important factor affecting its price. The price of gold will rise due to its high demand and finite supply.
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Another factor that influences the gold prices the world over is the strength of the US dollar. If the dollar weakens, investors around the world begin to sell the currency and buy gold for security. This causes a jump in demand and consequently, a rise in gold prices. On the other hand, when the US dollar strengthens, it causes a fall in demand for gold.
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The economic situation of the world is another factor. When the economic situation is weak with most investments providing low returns, investors are likely to put their money in gold.
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Trade and growth imbalances against the U.S. and the resulting twin deficits, that might culminate in a “fear factor”.
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Real interest rates and in particular the ones in the U.S.: interest rates compared to inflation and wages that might culminate in “financial repression”.
The whole spectrum of gold fundamentals are difficult to understand because of these factors. But gold investments are considered as safe havens especially when the economy is in turmoil and the currency is losing its value.
