During the past decade, we have seen the price of gold rise a massive 277 per cent, with investors recently turning to gold as a method of investing their money to avoid losses in the recession. Everybody is asking 'Why is gold suddenly so valuable?', and the fact that gold is a safe way of investing, or preserving, cash is precisely one of the reasons why the cost has increased so much.
Instead of risking putting money into banks that appear to be collapsing left right and centre, large businesses and corporations alike prefer to invest some of their funds in gold which never fails to sell on any market, in nearly any economic state.
Between later 1999 and December last year, 2009, gold, silver and platinum collectively rose in value by
nearly 250 per cent -- which is the equivalent of an average annual return of around 13-14 per cent.
Since 2008, gold has been rising in price even quicker than within the last decade as a whole, thanks to the global economic slump. In times of economic recession, gold seems to prosper and become much more valuable. The reason for this is simpler than though, as many people struggle to understand precisely why a precious metal would increase in price so much when everybody else is struggling to pay bills, live as they usually do and hold down a safe career.
During economic recessions, gold remains a reliable investment because the market knows that unlike currency, the precious metal will not be vulnerable to fluctuations in economic trends. In times of economic problems, and in times of crisis, gold becomes a haven for safe investment, benefiting large organisations through investment - and benefiting everyday people through cash for gold schemes.
Instead of risking putting money into banks that appear to be collapsing left right and centre, large businesses and corporations alike prefer to invest some of their funds in gold which never fails to sell on any market, in nearly any economic state.
Between later 1999 and December last year, 2009, gold, silver and platinum collectively rose in value by
nearly 250 per cent -- which is the equivalent of an average annual return of around 13-14 per cent.
Since 2008, gold has been rising in price even quicker than within the last decade as a whole, thanks to the global economic slump. In times of economic recession, gold seems to prosper and become much more valuable. The reason for this is simpler than though, as many people struggle to understand precisely why a precious metal would increase in price so much when everybody else is struggling to pay bills, live as they usually do and hold down a safe career.
During economic recessions, gold remains a reliable investment because the market knows that unlike currency, the precious metal will not be vulnerable to fluctuations in economic trends. In times of economic problems, and in times of crisis, gold becomes a haven for safe investment, benefiting large organisations through investment - and benefiting everyday people through cash for gold schemes.
