Ever since you were a child you have seen people wondering if they have met gold with gold. You may have thought that some people would build a whole load of gold mines using just pots and water, and of course magical streams.
But in reality the gold reserves are more in the rock formations than in the pebbles at the bottom of the stream. Industrially, golden bread is an inefficient way to find ore. But modern gold mines carry a risk that many investors simply do not want to accept.
Gold has lasting value, but at the same time it is difficult to find. In the age of globalization, parts of the world are experiencing an economic upswing that has not occurred for centuries. Gold is revered in some of these countries.
Think, for example, of India and China, which have a significant impact on global economic development. They also have a cultural connection to gold as a measure of wealth. Countries around the world are growing and buying gold as an investment at the same time.
So what's up? Now the current rapid demand for gold is going through what mines can pull up from the ground. The search for new gold is uncertain and has proven to be risky. And do the mines know how long they will last? Estimates are made, but they are not always accurate. It also takes a considerable amount of time – sometimes years – from discovery to production.
As we have learned throughout history, mines are dangerous places. Gold mines pose the additional risk of litter entering the water table. Production methods have improved significantly, but many countries have not yet accelerated.
All of these are great opportunities to invest in gold. The demand is there and can be checked. The rarity of gold is real. The mine can't produce it fast enough. The new mine may still be years away from production. Returns cannot be calculated precisely. At least it makes sense to invest in gold. Take a look at what you can afford and buy something to add to your financial portfolio. You'll be glad you did.