PRLog - Dec. 19, 2012 - LONDON -- London -- With the eurozone crisis still raging on, economies continue to rise and fall around the world making it difficult to know where to place your money. But during one of the most uncertain financial climates in 80 years, gold investments can provide a reliable product outside of the typical economic cycle.
Experts at investment portal Alternative Marketplace explain five reasons why gold is a safe bet in an unsafe time:
1. It’s safe
Unaffected by the global economy, gold is a safe commodity that remains stable even during a recession. Its value does not rely on exchange rates but stems directly from its chemical make-up: as a rare naturally-occurring substance, gold is a precious metal that cannot be manufactured or produced en-masse. This inherently limited supply, combined with growing demand, has steadily driven up gold’s value over time, helping the asset to outperform all other investment classes in recent years.
2. You can touch it
In a world of stocks, shares, bonds and credits, there is something reassuring about a physical commodity. Whether it is a coin or a bar, gold is a tangible investment that you can inspect with your own eyes. This inspires confidence; there is no chance of your money disappearing into an obscure fund or far-flung bank account.
3. Everyone’s doing it
The reliability of gold is no secret in these turbulent financial times. Historically, during periods of economic downturn, interest in precious metal investments has always grown. With an increasing number of people relying upon investment in gold as a key part of their portfolio, it is considered by many as a mainstream asset rather than an alternative product. It is no coincidence that the value of spot gold has already reached record highs this year, with prices expected to climb even higher.
4. It looks good
The appearance of gold is a small, but vital, part of its appeal. Jewellery is one of the most common uses for gold, accounting for over two-thirds of global demand. Dental uses of the product, again tied into its attractive appearance, also contribute to the worldwide demand for gold, not just from investors but from consumers. This demand never declines and helps to ensure that supplies remain limited, continually pushing up its value.
5. It’s valuable
Indestructible, beautiful, rare; gold’s value remains undiminished for a good reason. Governments and nations have long sought to hoard as much gold as possible to protect against the depreciation of other currencies. Indeed, it can be used as a currency in its own right. But the value of gold investment goes beyond the preservation of wealth: there can be tax savings too. Gold bullion coins that are recognised as legal tender in the UK, for example UK Sovereigns, are exempt from Capital Gains Tax, while investment grade gold is exempt from VAT.
Notes to Editors
Alternative Marketplace is an independent website that brings you a diverse range of alternative investment products currently being marketed worldwide.
The website address is AlternativeMarketplace.co.uk and the office address is 24 Jack's Place, Corbet Place, Spitalfields, London, E1 6NN.