| 1 |
Gold is the only accepted alternate currency that is not under the control of any government, and cannot, therefore, be influenced by politicians. While paper money is a liability with no intrinsic value, gold has a value in itself. |
| 2 |
The global excess liquidity and money supply (M3) growth are causing a real devaluation of the paper money.
In Europe, interest rates are below inflation rates and are, in fact, negative. The money supply growth and inflation are the main reasons why “paper money” is loosing its value day by day. |
| 3 |
Gold is the only form of preserving wealth in a crisis scenario. Where traditional diversifiers, such as bonds and alternative assets, often fail during times of market stress or instability, gold has proven to improve a portfolio performance during both stable and unstable financial periods. |
| 4 |
All the gold ever mined in human history amounts to about 153.000 tons according to the World Gold Council. This is equivalent to a cube as high as the Liberty Statue in New York City. The remaining gold reserves are max. 50.000 – 60.000 tons, depending on various sources. With an annual mining output of 2.900 tons per year, it is only a question of 12 to 15 years before the last gold ounce is mined. |
| 5 |
The world population is growing by approx. 100 million inhabitants per year. This exponential growth of the population, versus limited availability of commodities like oil, gold, silver, platinum and other base metals, will most likely cause even further gold price rises. |
| 6 |
There is a proven correlation between oil price and gold price. It is also likely that the oil price will continue its current upward trend, helped by the striking oil consumption increase of rising economies like China, India or the Far East. |
| 7 |
Gold appreciation is very high in emerging countries. A few months ago, Chinese regulations changed allowing individual investors for the first time to purchase physical gold; China has one of the highest saving rates in the world. In addition, India is the largest worldwide Gold consumer country and Gold has a dominant role in the Indian society. According to population forecasts, India will soon overtake China as the country with highest number of inhabitants. |
| 8 |
Gold is a highly liquid investment. It is both an asset and a currency. There are few other investments that you can convert as easily and quickly into currency as gold: no penalties, no long lead times, no strings attached. |
| 9 |
Major global investors have started to purchase physical gold in quantities never seen before. This has contributed to a steady increase of the gold price and is resulting in fantastic double digits returns over the past years. |
| 10 |
This trend is helped along by the abolition of the VAT in all transactions of investment gold. See Law of Value Added Tax (Ley 37/1992 del Impuesto sobre el Valor Añadido), Article 140 - Special Treatment of Investment Gold.
You can now also benefit from this legal exemption by investing in INVESTMENT GOLD WITHOUT VAT. |
