Why we should buy gold

by Shakti Singh Dulawat on November 12, 2008

Friend every one need gold, either it is marriage,party or invest Gold is best option.Gold is respected throughout the world for its value and rich history, which has been interwoven into cultures for thousands of years.I know one thing that people buy gold for various reason. Below are five reasons to buy gold today.

1. History of Holding Its Value
Gold value increasing time by time and no one can stop it’s value, it is a brand and every one need gold. You we every one need gold for marriage, girl friend or wife.really girls like gold.Unlike paper currency, coins or other assets, gold has maintained its value throughout the ages. People see gold as a way to pass on and preserve their wealth from one generation to the next.

2. Inflation
Gold has historically been an excellent hedge gainst inflation, because its price tends to rise when the cost of living increases. Since World War II, the five years in which U.S. inflation was at its highest were 1946, 1974, 1975, 1979 and 1980 (as of 2008). During those five years, the average real return on the Dow Jones Industrial Average was -12.33%, compared to 130.4% for gold. So gold play a big role at it palace.

3. Deflation
Deflation, a period in which prices contract, business activity slows and the economy is burdened by excessive debt, has not been seen globally since the Great Depression of the 1930s. During that time, the relative purchasing power of gold soared while other prices dropped sharply.

4. Increasing Demand time by time
Gold demand increasing time by time so it is good chance to invest in gold in this days. As such, the Indian wedding season in October is traditionally the time of the year that sees the highest global demand for gold. In China, where gold bars are a traditional form of saving, the demand for gold has also shown rapid growth.Demand for gold has also grown among investors.So want to earn more then do not miss this chance.

5. Portfolio Diversification
The key to diversification is finding investments that are not closely correlated to one another; gold has historically had a negative correlation to stocks and other financial instruments. Recent history bears this out:

  • The 1970s was great for gold, but terrible for stocks.
  • The 1980s and 1990s were wonderful for stocks, but horrible for gold.
  • As of 2008, this decade has been a good one for gold, and an unfavorable one for stocks.

Gold should be an important part of a diversified investment portfolio because its price increases in response to events that cause the value of paper investments, such as stocks and bonds, to decline. Although the price of gold can be volatile in the short term, gold has always maintained its value over the long term. Through the years, it has served as a hedge against inflation and the erosion of major currencies, and thus is an investment well worth considering.

This are top 5 stock at this time you must buy.
Top 5 stock buy for 2-3 years
Read treading rules before investing.

Gold & Silver is best invest option and keep investing in that.This are top 5 GOLD ETF in last 6 month.
Scheme Name

  1. Liquid BeES
  2. Quantum Gold Exchange Traded Fund – Growth
  3. UTI Gold Exchange Traded Fund
  4. Gold BeES
  5. Kotak Gold ETF

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