Buy gold

21 reasons to buy gold

At the moment with the gold price floundering between $1,200 and $1,300, it is understandable if you are struggling to think of just a handful of reasons as to why you should buy gold bullion, let alone 21 reasons. However, our gold investment platform has teamed up with Mining Maven to bring you a fantastic new PDF that gives exactly that- 21 reasons why you should invest in gold.

As we are all aware (and as a recent Best of the Web points out) China, India and the rest of Asia are the ones to watch when it comes to physical gold investment. Their approach to buying gold is quite different to those in the West, not only do they buy bullion for reasons other than the financial crisis but they also buy during periods of celebration and as a form of wealth diversification and protection.

Whilst here in the West there is constant news coverage regarding the growth of the gap between the super rich and the ‘99%’ in Asia it is all about the growth of the middle-classes. One interesting fact in this great PDF is “China’s middle class is approaching that of the entire population of the US.”

Looking at population growth and the movement of social classes is perhaps not something one thinks of when asking if they should buy gold bullion or not. But, as this great new PDF shows, the increasing number of people joining the middle classes is a key factor in gold investment strategy. As the people become increasingly wealthier, it is highly likely that the 47% that China and India account for when it comes to global gold demand, is likely to continue to grow.

But what of the amount of gold available? One of the many outcries from the gold and mining communities since 2011 has been regarding the cost of  mining versus the current price of gold. But this isn’t the only issue, we are also falling short of gold discoveries. So whilst many commentators may argue that they cost of mining gold will not become an issue, despite the falling gold price, this does not deal with the fact that the rate of gold discoveries is in decline.

Ultimately, as we say in the following PDF, ‘Whatever market manoeuvers might take place to lower the price of gold and to reduce its universal appeal as a store of wealth, they are unlikely to defeat the fundamentals of a reduced future gold supply in the face of relentless physical demand from the fast transforming and gold loving Asian nations.’

Find out the 21 reasons to buy gold here.

About the Author

Jan SkoylesJan Skoyles is Head of Research at The Real Asset Company, a platform for secure and efficient gold investment. Jan first became interested in precious metals and sound money when she met Ned Naylor-Leyland whilst working alongside him in the summer of 2010. Jan then went on to write her undergraduate dissertation on the use of precious metals in the monetary system. After graduating from Aston University in 2011 Jan joined The Real Asset Co research desk. Her work and views are now featured on a range of media including BBC, Reuters, Wall Street Journal, Mail on Sunday, Forbes and The Telegraph. She has appeared on news channels including Russia Today to discuss the gold price and gold investing. You can keep up with Jan's commentary by subscribing to our RSS feed Gold Investment News.View all posts by Jan Skoyles