This means that no matter what the market is for gold, in the long run it's always better than holding cash without earning any interest on it. While gold doesn't pay interest, its price does generally track the rate of inflation or better.

The gold supply is largely dependent on its price, as the cost to mine it has become so high. It used to be quite easy to prospect and mine for gold, with plenty of stories from the gold rush of hitting the mother lode. Nowadays, it's much more difficult to extract gold in large quantities and requires expensive equipment and technology. Also, since gold doesn't really get "used up" or consumed the way other commodities do, there is always a large reserve of gold regardless of supply. So unlike most other commodities, the supply of gold will likely continue to be more reactive to its price than to have a direct impact on it.

The first is the issue of supply and demand. When investing in anything, investors consider supply and demand. The problem with investing in gold is Contractual Gold Deliveriesthat there is a possible imbalance in this supply and demand that is enormous. The central banks of the world hold tons of gold in reserve. Some of them, like Canada, have been selling off their gold supplies. If all the world's central banking systems were to release their gold supplies onto the market, there would be enough gold in supply to meet demand for ten years or more without any new sources. This market glut would cause the value of gold to plummet dramatically.

The second issue is with the danger of having large amounts of valuable gold in your possession. This can be an invitation for theft. However, some people who prefer Logistics Support Services Ghana count the fact that you have it in your possession as an asset. They can hold gold bars with much more privacy and accessibility than owning stocks and bonds affords. The third issue is with affordability. Gold can be quite expensive and typically requires a lump sum investment. However, gold investing has been made more affordable through Exchange Traded Funds, or ETF's. These trade on the stock market and represent one-tenth of an ounce, so the cost per share is more affordable for the average investor.

Contact Details -
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Business Name : Italtec Gold LTD
Address : 10 Yemoh loop, East Legon
City : Accra
State : Great Accra
Country : Ghana
Mobile phones: +233 244 418922 / +233 244 965 997
E-mail : [email protected]
Website : http://www.italtecgold.com/