Is it advisable for a gold price of $ 1100 per ounce to buy? There would have been certainly better times in order of the timing.
In the past the rising inflation pushed the gold price always upwards. National rescue programs for the global economy cost huge amounts and are financed on credit. The United States and Great Britain have already begun, to finance the new government debts by printing new money.
2. Currency reforms
The huge amounts of debts which accumulate by governments around the world grow and stir up fear some investors before a currency reform.
A look back in the history is enough to show that always again banknote currencies became worthless from one day to the next. The owners of physical gold are saved because gold is not defeat and you can replace it against other stable currencies.
3. Previously purchased only few gold
It might be created the impression that the people in Europe and the US are in gold rush. Supposedly we must wait for the delivery of gold bars or gold coins forever, but in reality, only a few have actually invested in gold. Did you ask ever in the circle of your friends who bought gold?
4. Gold is a scarce good
The global gold production is decreasing. The light gold reserves are already funded. It is therefore becoming increasingly difficult to get expensive metal from the soil.
The Chinese now have huge foreign exchange reserves. These reserves originate partly Yuan to the US dollar, inter alia from the Chinese currency connectivity. Thus, they allegedly have a monetary reserve of approximately $ 2 trillion USD. The Dollar weakness devalues continuously the dollar reserves against other currencies. To guard against further value expiry, the Chinese obviously invest US dollars in gold because the official Chinese Gold reserves rises to for years.