About Gold (Legacy)

Gold has successfully preserved wealth through many generations. The same, can't be said for paper currencies. This has made gold one of the great hedges against inflation.

In 1970, an ounce of gold equaled $35.8 - enough to buy a  suit. If you had an ounce of gold today and converted it at today's prices, you'd still be able to buy a suit. But if you'd kept your $35 in paper money you'd barely be able to buy a tie.

The potential of gold to preserve wealth is even more important in an economic environment where investors are faced with a declining U.S. dollar and rising inflation.

What is the gold price today?

The gold price changes 24/7/365, as it’s traded all over the world on many different exchanges.

There’s more gold bullion than we need, so changes in price are linked to market sentiment and events, rather than availability.

Here are the three main factors that affect the gold price:

• Uncertainty: When times are bad and there’s economic instability, demand for precious metals is usually strong as investors seek a safe-haven. 
• Economic issues: Changes in economic policy, or the strength of a nation’s currency, or interest rates can all affect the price of gold.
• Demand: Precious metals aren’t just for hoarding by governments or the rich. Gold is used in industrial processes. The other big driver is the jewelry trade. During times of prosperity, people are more likely to buy jewelry. In some Eastern countries, precious metals are given as gifts in the form of coins or bars to family members. 

What the bears are saying

• Gold is an outdated investment: Sure, gold has been used for centuries by people both rich and poor to hold or transfer wealth. 
• There's so much gold; we don't need to mine anymore: For all the practical purposes Gold is used for, that’s correct, we have plenty in government and private bank vaults across the world.
• Gold is hard to use for anything (it’s too heavy): True, gold is hefty, cumbersome, and difficult to trade with, even if it's just across the street (let alone across the world). 

What the bulls are saying

• We’re in uncertain times when gold prices traditionally do well: Gold often performs well in times of economic or political uncertainty.
• Gold is in demand: From digital circuitry and medical devices to jewelry and wealth creation, gold is in demand for practical uses, and when combined with economic uncertainty, could be a good investment option.