There are many people around the world that are finding it tough financially. With the present state of the economy the stress of finances is enormous. Many people are looking for free financial tips so that they can get back on track financially. You may be interested in this article if you are looking for financial advice.There's no such thing as a free lunch, and that especially applies to supposedly free financial advice. Here's how to spot them so you don't get stung.


Friday, 9 August 2013

One Way To Trade Gold Is To Do "spot Gold" Trades

By Kelly Lyalls


Gold has had value since early man began to appreciate its beauty and its use as a metal. With gold doubling in value over the last few years, many clever investors have seen their total asset pool increase in value while most people's investments have declined or stagnated. Research shows that gold has risen appreciably in value since the end of 2000. That makes it an investment you can count on, even when, financially speaking, the world looks close to breaking point.

It is funny to think that if you showed a piece of gold to a person from the Iron Age, they would immediately know what it was and its worth. Surely one of the biggest financial or economic changes in the 21st century has been the internet and its ability to give everyday people a chance to trade commodities like gold. It is amazing in modern times the rate at which we can transfer and share information and the role that has played on wealth creation.

Gold has been known for millennia as a useful and spectacular metal to work with - think of the mask of Tutankhamun, surely one of the greatest examples of gold working from ancient times that we know of. Gold's purity and the fact that you didn't have to do too much to it to make it look incredible meant it became an invaluable part of many early civilizations. Even as early as ancient Greece Gold had come to be used as a form of money. While we no longer use the gold standard (meaning that an economic unit is worth a certain amount of gold), gold is still stockpiled by banks today. Even in the 21st century we value gold for its properties and its rareness.

Do you even know how the money you carry around with you actually achieves or maintains any tangible value? Bills and coins are nothing but promissory notes issues by governments with a prescribed value. The real value of a country's currency is, for most countries, decided by a real-time international currency trading market. The markets establish the exchange rate of one currency against another. It is not totally unheard of for a country which is bankrupt or nearly insolvent to be forced to buy and sell using gold to gain access to hard currencies.

Gold is no longer used by most countries to secure the currency, instead they issue fiat money which is nothing more than a promise to pay the holder a value equivalent to what's printed on the paper or coin. Debt and hyper-inflation have killed off over a dozen international fiat currencies in the last hundred years alone with most of these countries suffering very difficult economic hardship as a result. The US and Roman Empire have both seen fiat currencies fail. In all cases, these currencies were eliminated and they resorted back to a gold backed currency.




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