Gold: demand, supply, deficit and perspectives

There are different ways to protect money from inflation. The purchasing and safekeeping of silver, gold, platinum and diamonds are the most stable and beneficial of those. The purpose of this article is to explain the role of gold in capital preservation.

The World Gold Council (WGC) published the "Investment Commentary: 2015 review and 2016 outlook" report on 7 December. The report presents analyzed market data from 2015 and gold prices forecasts in 2016. The quarterly study of the gold market was delegated to the independent consulting firm SFA (Oxford). More details at the end of the report.

Market experts who analyze the overall situation in the gold market have been noticing an ever-growing demand and the consequent increase of gold prices. Over the past years, banks and large and medium-sized companies as well as high-net worth individuals have sought to benefit from this increase and gold's potential price performance so as to be protected against negative economic factors.

As we can observe in Chart 4, gold prices are growing strongly and now this asset belongs in many portfolios. If we step back and look at the bigger picture the analysis is straightforward: gold is the right choice.

Business leaders with experience acquire physical gold in order to protect their capital against unexpected events such as:

a) Bankruptcy of banks

b) Currency inflation

c) Currency depreciation as a result from inflation

Besides, acquiring gold saves money in the long-run and allows people to increases their income derived from the sale of this asset since they can acquire more amount of goods than in the time of purchase.

Today, physical gold bars are available in different denominations, which makes them affordable for just about everyone and more convenient for their sale.

Upon purchasing gold, pay your attention to the following aspects:

• Fineness should be 999 minimum

• Gold should be in the form of bars for you not to pay extra taxes.

• If you purchase gold in the Global InterGold Online Gold Shop, you can conveniently sell it back and receive its value in paper money.

Purchasing gold is the right solution for people who do not want risks though aim at preserving and increasing their patrimony.

Certainly, gold prices vary daily as a natural consequence of market movements. However, according to statistics, these fluctuations do not cause any significant modifications in the long term and gold remains the ultimate “all weather” asset class.

A source: gold.org/download/file/4765/investment-commentary-2015review-2016-outlook.pdf 

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