The financial crisis that we find ourselves in means that we are unsure of where to place our money; banks are collapsing before our eyes, governments defaulting on their debt across the globe and share prices becoming increasingly unpredictable. However there is one solution to where to invest or store your money – gold!
Time and time again we have found that the value of gold is very constant. In fact, gold is used by governments to back-up their currency – basically it is used to show that their money is worth something. Approximately 20% of all the gold mined is currently used by central governments and investment funds. click here for more information on gold as an investment.
One of the reasons that gold is so valuable to the world is its rarity. Only around 165,000 tonnes of gold have ever been mined by humans, with a very small amount left to be mined from ore. Due to its rarity, the value of gold has remained consistent over the years, with it often growing in price due to inflation.
You may be surprised to know, however, that gold is not very useful for industry. Although it is used in electronic components and in dentistry, the actual usefulness of the metal is relatively low.
Jewellery will always be one of the main ways that gold is consumed, making it a very stable investment. The desirability of gold increases as less and less of it can be mined, making it an excellent investment opportunity.