Precious metals trading Frings from Aachen informed given of the problematic debt situation in the euro area and fear has on the investment and financial markets around the world at the moment the United States. This raising the US debt ceiling, nor the euro bailout something seemingly really change. Broken confidence in the global economy the gold price driven by more and more in the height. Middle way evaluates the precious metal as high as never before. To protect their assets from a feared economic crisis, investors put their money in gold more and more. But why is the precious metal such as crisis estimated? The Aachen-based gold expert of Guido Frings is this question.
In periods of economic growth investors are keen, with profitable plants to increase their wealth. There is a certain tolerance for risk, they want to invest, in speculative investments. Traditionally, this is the stock market, where in recent years the raw material, currency, and commodity futures market again became the scene of investment speculation. Less risk-taking investors rely on long-term bonds. These financial products guarantee income and have a low risk of loss.
Finally, people can invest in the long term or speculative real estate. Perception of investment risks in the current, fear-dominated atmosphere outweighs for many investors. The stock markets could break into a depression or recession, receivables from government bonds could even fall out, the debtor countries should be insolvent. On speculative real estate investments, few investors dare currently anyway, the memory of the bursting of the housing bubble is too fresh. Totally unrealistic, aren’t these risk expectations, considering the losses that German big banks currently make on their investments in Greek Government bonds. Outweighs the perception of investment risks that arise sooner or later loss fears. The risk appetite decreases and security is sought rather than high returns. Asset protection is now going on profit. Gold is in the Eyes of many investors an excellent crisis system. Neither Mcclory nor its consumption are determined by industrial factors. A sudden increase in production is practically unheard of, which is why the supply of gold has a high predictability and it is at the same time a really tangible material in contrast to pure financial market products. Gold remains also exist if the world markets should collapse. Here begin the psychological factors that make the ideal crisis investment physical gold. Investors looking for safety, assess material tangible objects, like all people, higher than in virtual goods. There are indeed above all psychological reasons, which massively increase the demand for gold in times of crisis. Gold is in the perception of most people for everlasting wealth. This fact is due to the appreciation of the precious metal, cultivated for millennia and is only through socialization to the truth. Gold is a secure crisis facility because most investors so expect it. Improving the economic situation, the crisis unit can quickly lose on gold its attractiveness. Now, again seeking yield the investor psyche and invested their capital in stocks, reducing the price of gold. The current demand for gold that is for gold seller as an excellent opportunity to make a high profit, before again slowing the demand for gold. The Aachen-based gold expert of Guido Frings assist them here at any time as a trusted business partner to the available.