Usually when price on gold were up, the dollars are down. There for gold investor must find a way to balance the operation profit and loss thru dollars. Also gold is tend to maintaining the buying power from time to time, investor tend to buy currency to cover influence from inflation and changing currency.
The currency buying power has generally decreased as impact of the raise in commodity price and service as gold in recent years. Big investor such as Jim Rogers is very bullish in commodity market for the next decade.
Reasons to consider investing in gold.
1. Gold doesn’t loss it value everyday like money. It doesn’t effect by inflation or devaluation because there are limited supply of precious metal.
2. Gold is considered as the investment paradise. It has already shows good performance for the crisis years or at war when other investment having loss in value.
3. It doesn’t under the political influence. The government and central bank may have influence the price through purchasing or selling for gold but the market is still free.
4. For now, gold supply is very limited due for the limited resource while having demands from country like India and china that compound their supply to the highest level.
5. It is a solid investment, which accepted as currency in global area.
6. It save and profitable in investment.
7. The main use is for variety supply for country. There are few to sell and plenty as supply, which expected to increase the price.
8. It makes all investment possible.ingot, deposit certificate, futures and mutual fund in gold.
9. It considered the best investment in crisis.
10. Do not pay VAT (Value Added Tax) on purchases (but do pay interest for paper and holding fees for physical).