Gold Portfolio Diversification
By: Fatih • Essay • 251 Words • May 31, 2010 • 1,115 Views
Gold Portfolio Diversification
Gold Portfolio Diversification
Gold has been known and highly-valued since prehistoric times. It may have been the first metal used by humans. It was also used many times as the main currency in many monetary systems. One of the most important characteristics that has always made gold special is its great value, which has stayed stable throughout its life
When the economy struggles or monetary problems erupt, the price of gold historically has risen and was never affected by such economic recesses. This benefits gold investors whether they’ve bought the metal itself or a producer’s stock.
Gold’s tendency to rise in value when other assets, stocks, or bonds are falling is considered the strongest reason to invest in the precious metal. Global gold demand exceeds global gold supply, therefore giving its price the tendency to continuously increase though time. As many currencies and economies are