Over time the value of money is eroded severely. You just need to look at what an ounce of gold would buy a hundred years ago and compare it to what an ounce of gold would buy today.
If you were to use as an example of what gold was worth in US Dollars a 100 years ago in 1917 and then see what the same value of that dollar would be today, you would quickly appreciate why gold is such a good long term investment for your future and that of your family and loved ones.
In July 1917 gold was worth US$20.67
In 1917 a loaf of bread cost just 7 cents
a dozen eggs cost 34 cents
a quart of milk cost 9 cents
a pound of steak cost 26 cents.
So an ounce of gold at $20.67 would buy 295 loaves @ 7 cents per loaf of bread back then.
Work out for yourself how many litres or quarts of milk or pounds of steak you could have bought with your one ounce of gold in 1917.
Now if you had saved your $20.67 for a hundred years in a safe place, well, how many loaves of bread would you buy today with $20.67?
About THIRTEEN if you were to buy really cheap mass produced white bread which is probably nothing like the wholesome GMO free and chemical free bread of a 100 years ago.
If someone had lived long enough and saved an ounce of gold for 100 years, it would now be worth US $1250 dollars (at time of writing) and it would now buy over 600 loaves of white bread.
An ounce of gold today would buy 271lbs of beef steak in the US. Compare that with $20.67 if you had saved the cash under your mattress for a hundred years... gosh it would buy just 4.5lbs or two kilos of beef steak today.
There is no contest!
Gold retains it's value in the real world regardless of what fiat money does.
Obviously there are very good reasons to invest your money in gold to protect your savings from being eroded by inflation. Buying gold as an investment is absolutely worth it because it is THE BEST AND SAFEST HEDGE against long term inflation AND you can now buy it in small increments.
Over a long period of time, as the above figures show, gold has more than kept pace with inflation. It has markedly increased in buying power when comparing the buying power of a dollar from a hundred years ago.
Essentially... the return on longer term gold investment is well in line and in fact well above the average rate of inflation in India.
A second reason to invest in gold is to balance the massive movement downward that equity markets suffer from time to time. Everyone who had money invested in the stock market would recall what happed in 2008 as the stock market crashed and fell of a cliff.
It sent investors into bankruptcy all around the world. Of course those that had a good percentage of their money in gold were laughing all the way to the bank as the gold price rocketed upwards as the stock market bottomed out.
Many people lost the shirt off their backs and have never recovered since. The gold bugs of course made a huge killing if they sold off at the top of market when it hit almost US$2000 per ounce
So gold as an investment in your portfolio will help reduce the potential for volatility and give much more security and peace of mind for average small gold investor.
So is buying gold a good investment?
A resounding YES is the only answer an astute investor could make.
So in the short term is it profitable to invest in gold?
Well it depends on how short the term is. You may get some staggering returns on gold if you were to buy during the dips that occur as they are at this point in time as I write this in February 2017.
If you had bought gold in 2010 and kept it for less than two years you would have made over 100% on your investment if you sold it 18 months later when gold peaked. It's all about timing if you are looking for short term gains.
On average gold increases at about 10 percent per year which puts it on a par with real estate as an investment for the long term. However, just like real estate it can have swings both ways depending on market forces.
History always repeats itself so don't be surprised to see another huge movement upwards in the gold price if anything happens in the world economy that shakes the foundations of the fiat money capitalists in the world.
In my own opinion, I would be extremely surprised to see any substantial downward movement in the price of gold because of the huge unrest that is occurring throughout the world in the overblown debt ridden countries and markets.
If you want to invest in gold and want to make extra money just by buying gold and referring others how to buy gold, the same as you will be able to do when we show you how, then it becomes a very profitable exercise indeed for the small investor to do this.
Many are making incredible monthly gains of a 100% or more on their initial investment outlay. In fact some are reporting gains of over 150% per month in the first six months of using the investment principles we teach you with this referral program.
The pros and cons of buying gold jewellery
India has an age old fascination and tradition in regard to buying jewellery as opposed to gold bars or gold coins. There are many disadvantages as far as an investment in gold is concerned in regard to jewellery. It's not wise to buy gold jewellery as an investment. You will easily pay double or more than what the actual gold price is.
Investment in gold coins and gold bars
Investment in gold coins and bars is a far better option compared to gold jewellery. The problem is in India where do you buy legitimate gold coins and gold bars from a reputable honest dealer?
Yes... no wonder so many people opt to buy the expensive gold jewellery rather risk buying coins and small bars of gold from an unfamiliar and untrusted source.
The latest most trustworthy way to buy 99.999 percent pure gold is now available online in India. You can buy any quantity from a single gram upwards and have it delivered to you by courier and it is fully insured.
The company, based in the UK and in Europe, actually pays you to refer others to buy gold from them. In fact it can be quite profitable for you to refer others. To reward you they will give you more gold for your referrals. How good is that? Tell a few other people how they too can buy small lots or large lots of gold, and suddenly you find that your gold referral fees are starting to mount up in the form of more gold in your account.
Sounds too simple to be true does it not? Well unless you actually get the full story on how this gold investment actually works and how much money you could make from it... then you will never know what you have missed out.
So make sure you ask us exactly how people in India are making substantial investment gains in the gold market.
You know... banks sell gold coins and bars at premium prices, but they wont buy it back. The gold business I described above will buy it back from you at the current buy price of gold. How good is that? A no risk investment that could start you on the path to financial freedom.
You could also buy gold in an ETF which is short for Exchange Traded Fund.
But could you trust them. A gold exchange traded fund is a type of fund which invests in digital gold and the units of this mutual fund scheme is listed in the stock exchange. They may not actually own any physical gold. You don't see the pretend gold and you can't have the pretend gold sent to you because it may well not even exist.
It's just figures in a computer for most of these electronic trading system they set up. There is little or no tangible gold held by the ETF. When it is all boiled down it is massive con because there is nowhere enough REAL gold to fill all the digital gold orders in the world.
Many people think they own gold but it is just smoke screen They own digits in a computer and they don't even own them when the system collapses at some time in the future.I don't know about you, but I would like to be able to see my gold and to hold it in my hand, if I wanted to. So if you like buying pretend gold as figures in a computer somewhere, by all means go ahead and buy digital gold through an ETF or through a currency Forex broker somewhere. You will probably get burnt sometime in the future.
Not my cup of tea and probably not yours either I'm guessing.
It begs the question... Would you trust someone else to keep your gold safe when you don't know them from a bar of soap? A resounding NO would have to be the answer to that!
There is all sorts of ways to buy digital gold in the world via Gold Funds and on the Forex Currency market. You know, none of it is real. You are buying thin air. If times get tough those funds and currency brokers just shut up shop and rip the profits out before you get your digital gold out in paper or digital money.
You see the trouble is they never had the gold to start with. It's actually a huge con and one that any sensible person would never get involved in as far as a rock solid investment in REAL GOLD is concerned
So... lets just forget about the pretend gold that doesn't exist except as digital gold in computers. That's for the HIGH RISK takers not the long term gold investors.
But by all means go ahead with it if you have a very big appetite for high risk trading.
As far as gold investment is concerned how much of your capital should you put into gold?
The simple answer to that is around 20% of your net worth should be allocated to gold. If you own genuine 99.999% pure gold and it is stamped as such you can sell that any time you want to and you will be paid what the buy price of the gold is on that particular day.
So that is why buying certified pure gold, of absolute 99.999 purity is the most important way to buy and hold your gold. It can be sold for the gold price whenever you want to sell it.
So to answer the questions at the top of the page click the button below
What is the best and simplest way to invest in 24 carat GOLD in India?
How to invest in pure GOLD online in India in complete safety?
How can I invest in physical gold without buying GOLD jewellery in India?
What other gold investment options are available online to Indian GOLD Investors?