Make no mistake, the currency crisis is coming. Do people still rely on US dollar? Should we buy gold?
Rather than sitting back and letting it happen, protect yourself and profit from an economic upset that could basically render your dollars about as worthless as the paper they’re printed on.
We saw a preview of this kind of debacle quite recently. In early 2006 a currency plunge triggered an avalanche of sell orders in emerging markets from Brazil to Indonesia. The Icelandic krona plunged nearly 10 percent in only two days, dragging down Icelandic stocks and bonds with it and subsequently spread to Brazil, Mexico, Poland and Turkey.
A precursor to this was the Asian Currency Crash of 1997, which sent stocks south like ducks in winter. Banks, insurance companies, real estate and bonds also fled the scene. The only viable option left was gold.
In the event of another such decline in currency values, gold will be worth at least 10 times its current value.
Why gold?
How is this possible?
Simple: Since gold cannot be made or printed at the whim of greedy politicians, it can’t be devalued as quickly as the paper money that is printed whenever need arises.
When a currency is backed by gold, $1 in paper money has to be backed by approximately one dollar’s worth of gold. Once a currency is no longer backed by gold, governments can print as much as needed. Naturally, most world governments have gone off the gold standard and that is why paper money has no intrinsic value.
As a result, most major institutions only speculate short term between those currencies and associated local values, such as stocks or bonds, and then they convert their profit into gold.
About Forex Super King
This is where Forex Super King excel. They specialize in global trading and diversification.
Their money is made in both currency trading, averaging 1,000 pips (price interest points) per month, and U.S. small stocks that recently acquired dual listings with the European exchange.
As a result, clients can experience a short-term windfall from 50 percent to 400 percent by tapping into the heavy buying power of European investors with holding time from a day to a month. They then convert half of our profit every month into gold.
You are shown how to get set up so that you can hold your funds in several currencies, even if you only have $500 to start.
Lastly to show you how to not only diversify internationally but how to trade the international markets as well as currency markets to realize substantial profit, short term.
Understand gold in depth
Do you know…Humans have been fascinated by gold for thousands of years, by the way it never tarnishes and by its unique color.
Sadly, gold is useless in engineering terms, except for plating electrical contacts, to ensure they never tarnish and lose their conductivity. You will find gold plated contacts on good quality hi-fi components.
The metal is too soft, with too low a tensile strength to be used for much besides necklaces and rings.
As an investment though, gold is a different story altogether.
Gold prices fall and rise, according largely to the degree of fear that people have about the future. When war is imminent, gold prices soar, as more people buy gold.
They are buying gold for several reasons. The gold will be there regardless of what happens to the currency and because war tends to lead to high inflation, paper money becomes worth less and less. People outside the war zone buy gold because they see the price going up and have they think it will keep going up and they will be able to sell at the top of the market and realize their profits. also buy gold because
When economic conditions are good, inflation low and employment rate high gold prices fall. Gold prices fall because it has no intrinsic value, only the value attached to it by peopleís fear. In calmer times, it is possible to invest in shares and gain from the rising share prices that usually accompany economic growth.
The conclusion on gold
Conclusion: Go against the trend – buy gold when everyone is saying to invest in the stock market. Sell gold when things are looking grim and there are many buyers out there.
Until recently, many countries made it illegal for individuals to hold gold bars or bullion. Individuals could buy gold coins and other items however. The South African Krugerrand is mint to exploit this opportunity and to earn much needed foreign exchange for that country during the years of economic sanctions.
Nowadays you can buy gold, silver and platinum coins in many denominations, including Canadian and US dollars, sterling crowns and sovereigns.
Tradionally, many investors shunt gold and invest in equities or fixed income markets. With the price of gold performing extremely well, alot of investors are turning their attention on gold.
The price of gold has topped US$700 recently. Gold is in a bull run since 2000. What is the implication? Will gold continue to rise in the future? Is it time to invest in Gold now? How to invest in Gold?
Why gold is rising?
The rise in price of Gold is due to a number of factors. Some of them are list below.
1. International tensions and Bad times
During internation tensions and war, gold will always hold it values. Sometimes, investors trade currency for gold In recent Iran and US nuclear issues, price of gold will go up to US$700 in fear of oil prices rising. US dollars and inflation along with high federal trade deficit and debt have make investors buying gold to heged against currency flunctuations.
Though now the price drop slightly, it believe that gold is a good investment tool to use as a safe haven in time of crisis and bad times.
2. Supply and Demand Fundamentals
When the price of gold rise, more investors will buy gold. Since the supply and production of gold has limit, it will not be able to keep up with the increasing demand from the market. This will make the price of gold rally further.
3. Stock Market Bearish vs Gold Market Bullish
Gold always perform opposite of stock market historically. When stock markets are performing badly lately, gold markets were bullish. With uncertain economic and global conditions, some analyst believe that gold will further appreciate its value and continued its bullish run for long term.
How to invest in gold now
It is never too late to invet in gold now!
There are a few ways to invest in gold as per below.
1. Gold Jewelery
Gold jewelery is a popular means of investing as savings in developing countries like India and Middle East.
2. Gold Bullion and Coins
Gold Bullion are gold bars in 1g to 400g. Goid coins are legal tendar of issuing countries and usually sell at a small premium above current spot gold price. Popular investment grade coins are US Eagle, Canadian Maple Leaf etc
3. Gold Certifcates or Accounts
These are ownerships rights to gold bullion held by a financial instution such as a central bank for safe keeping.
4. Gold Mining Stocks
These are stocks of gold mining and exploration companies. When price of gold rises, some mining stocks offer handsome dividends when the issuing companies profits.
5. Gold Mutual Funds
These are funds that have gold in the portfolio managed by professional fund managers. Some funds are region specific (such as US) or spread across different mining companies.
No matter what kind of instruments you choose to invest in, you have to mix your portfolio with the right proportion with your equities. The strategy to investin gold is to have balance portfolio with diversification. The objective is to use gold as a hedge against flunctuations in fixed income market. The best strategy is to start with 10% level of your portfolio to invest in gold and slowly varies you level of gold to increase your portfolio stability. The number of people investing on gold is increasing steadily over the decade.
Learn more about investment fundamentals here.
More on gold here.
