12 states in the United States have proposed letting citizens use gold and silver as legal tender, meaning if you just so happen to live in these states, buying gold may not be a bad idea. After all gold is self stabilizing.
Thoughts?
Saturday, March 26, 2011
China's Central Bank recommends gold for "value preservation"
The banks in China recommend buying gold to preserve their currency and hedge inflation. The Financial Markets Review has come out and stated that many currencies are declining against the value of gold.
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3 comments:
it's always a good idea to diversify your portfolio with gold. Gold doesn't easily lose its value hence portfolio managers ofter use gold to hedge against political and financial crises. Also gold's low correlation with other commodities such as oil makes gold safer than bonds or stocks. Hence China's Center Bank is right when recommending to invest in gold, especially nowadays when governments pumped billions into economies.
Not only for China, but also for the U.S, gold is good option to invest. What fed does to cover the debt, is to print money. As a result, cash is flowing in the market, and the value is getting less and less. Invest in gold and sliver is good choice in the next few years.
This is very smart move on China's part.. Gold has always been a very stable investment and will continue to be in the near future as it protects a billion dollars from inflation.
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