Why Invest in Gold?
Ever since the discovery of Gold, Gold has played a very major role in structuring government policies and affecting financial market movements. It is more than just another commodity; it is the currency that has evolved the market place over the last 5,000 years. Gold and silver are the only currencies not created and controlled by the governments.
Gold is known to be the basic foundation for all long term savings and investment plans. For centuries, investors have invested in gold as a measure taken to hedge their assets. This is especially true in times of financial crisis. Therefore, due to the stability, gold price is a very attractive investment in every investor's portfolio.
Today's government currencies are FIAT currencies. A FIAT currency is a currency brought into existence by government decree. The value of gold, on the other hand, is independent of any government laws. Unlike FIAT currencies, gold is accepted as valuable without needing protection of law.
Gold has gradually turned into an important asset for investors looking to diversify their portfolio. Portfolio diversification is distributing one's wealth into different asset classes like cash, debt, equity, property, gold, bonds and so on. These asset classes have a certain return expectation and risk attached to it.
Portfolio diversification refers to reducing investment risk by purchasing a variety of assets. It is suggested that 5% to 15% of the investment portfolio should contain this precious metal.
Gold is renowned as a hedge against inflation. The most consistent factor determining the price of goldgoes up along with it. Since the end of World War II, the five years in which U.S. inflation was at its highest were 1946, 1974, 1975, 1979, and 1980. During those five years, the average real return on stocks, as measured by the Dow, was down 12.33%; but on the other hand, the average real return on gold was up 130.4%.
Gold has retained its role as a monetary asset. Central banks around the world still hold around 12 per cent of their reserves in gold, and some private individuals even use gold to settle payments. However, gold is not "issued" by any particular government and is not beholden to any political regime. In this sense, it is a truly global, international currency, free of political or national association and liability.
In general, gold is considered a low risk investment because its price is typically not very volatile. The gold price tends to fluctuate not more than the world's largest blue-chip stock market indices like the S&P 500. That is why many investors with low-risk profiles are attracted to gold. However, investors in high risk assets also find gold useful because they can use it as a leverage to manage their risk.
Demand and Supply
A total of 165,000 tonnes of gold, roughly equivalent to 5.3 billion troy ounces, have been mined from the beginning of human history to 2009. Observation of the annual western world gold demand provides a picture of accelerated growth. It is noticed that while the demand of gold is growing, mine production remains relatively low. Gold demand is increasing 1.9 times faster than its annual supply, causing the price of gold to surge dramatically over the years.
Africa is renowned as the world's major gold producer, second to China. According to the US Geological Survey in 2009, South Africa alone produced 210 metric tons of gold...read more
AustraliaAustralia is rising to be the world's third largest producer of commodities in the world. Due to its unique geology and size, Australia's mineral potential remains at the height compared to others countries...
HOW TO INVEST IN GOLD EASTCAPEMC (ECMC)?
Gold is the basic foundation assets in the portfolio deposit or investment. Gold used by investors as a hedging instrument of wealth / asset meraka. The stability of gold prices remained firm even in times of financial crisis.
JOIN us as shareholders EastCapeMC, then you will get:
Fixed dividend date 15 per month each worth 1 gram of gold / Pin. If the 10 pins, then the dividends worth 10 grams, and so on. Dividends can be redeemed for physical gold (Gold Redemption)
The advantage of daily transactions (trading).
Trading results and other bonuses that have been converted into E-cash can be exchanged /products to buy gold bullion, both gold prouksi PAMP Suisse, Precious Metals Antam, Poh Kong and others, ranging in size from 1 gram, 5 gram, 10 gram, 25 gram , 50 grams, 100 grams, and so on. (Special Services Our Member).
Bonus sponsorships / Direct Sales Bonus (Direct Sponsor Bonus)
Bonus Development Group (Group Development Bonus)
Daily Bonus from Network International (Global Auto Placement Bonus)
Elite Leader Bonus