Gold represents a viable way to hedge against weakness in the largest global economy – the United States. US economic weakness is likely to spill over into other economies, and central banks typically react by lowering interest rates and increasing the money supply. When these remedies fail to spur demand, they can lead to significant inflation and loss of purchasing power.
Precious metals have always been used as means of exchange between traders and as a store of wealth, with gold being the metal most commonly used for this purpose. Today there are many ways to invest and trade in gold and other precious metals.
In today’s volatile global investment market, if there’s one thing that offers some semblance of assurance, then that has to be precious metal trading. Gold, silver and platinum prices generally tend to remain on the positive side, courtesy of the popular demand among consumers and investors alike.
