According to wealth manager and international bullion brokerage, Gold and Silver Investments, because Gold is a non-replenishable substance and as a result, Gold bullion production is declining each year. As a result, the value of Gold continues to grow and is a much safer investment.
In the last thirty-seven years, the world population has more than doubled, inducing a huge strain on limited resources meaning the value of non-renewable substances, such as gold, can only increase, but the wealth manager says that as long as there is demand, gold will increase in value.
Stephen Flood, executive director of Gold and Silver Investments, said: "Unlike paper investments such as bonds and equities whose value is dependent on the performance of governments, banks, corporations and the global economy; not the most reassuring of propositions at this moment in time, gold is a hard, tangible, very limited in supply asset whose value is intrinsic to nature."
With the current global credit crisis, the value of paper money is increasingly unstable, which can be seen with the recent fall in value of the pound versus gold, the dollar, euro and other currencies.
The end result of a decline in the value of paper pounds is unpredictable but by investing in gold, investors can rest assured that through prudent asset diversification and asset protection their assets and wealth remains secure whilst simultaneously growing, says Flood.
He added: "Gold is the ultimate insurance against economic and financial difficulties.
"One purchases health insurance for one's family and oneself not in anticipation of severe health problems but simply in case of that eventuality.
"Similarly one should invest in or save in gold not in anticipation of economic or financial difficulties but simply in case of them."
