Gold investment is still a good addition to my portfolio?

Gold investment is still a good addition to my portfolio?

From the gold exchange-traded fund (ETF), to purchase physical gold gold stocks, investors now have many different options when it comes to investing in the royal metal. One school of thought says that gold is no longer owned antique barbaric past monitoring quality. In today's economic environment, the bill is the preferred money, gold only advantage is that it is a product used in the precious jewelry.
Various other end of the spectrum is asserted that gold is an asset, especially for investors required a portfolio composed of different intrinsic qualities that make the idea of ​​the school. In this article, we focus on the function of gold in the modern era, why is it still belongs in the investor's portfolio, a person can spend all kinds of hand gold market segments.

A Brief History of Gold
Although gold history began in 3000 B, C, Egyptians began to form when the old precious jewelry, it is not up until 560 BC began in gold as money. Because gold precious jewelry is now widely accepted and recognized throughout countless edge of the Earth, producing a gold seal seems the answer.
The arrival of gold as money, gold's growing relevance. Pounds (equivalent to a pound sterling), are based on the amount of gold (or silver), which represents pence shillings.

In other words, to be used as cash coins, only represent gold (or silver), which is currently in the bank transfer. (For more information on this, please read: Gold Standard Revisited.).

The demand for gold will not last forever. Throughout 1900, there are several key events that ultimately led to the gold monetary system transition. 1913, the Federal Reserve (Fed), and began to release promissory notes (the current version of our paper money) guaranteed notes convertible gold needs. Gold Reserve Act of 1934 "to the U.S. government ownership of all circulation coins, gold coins and eliminate any new casting. Basically, this behavior began to gold or gold coins, not cash as the development of the idea of ​​the United States abandoned the gold standard standard 1971, the U.S. currency is no longer backed by gold.
Prime importance in the modern economy.

Provide truth, gold is no longer backs dollars (or other currencies around the world for that matter), why it is still vital today? Currently, these organizations are responsible for holding gold ground about one-fifth of the global supply.

Gold as a hedge against dollar declines and inflation.
The idea of ​​gold to preserve wealth, and more importantly, in the financial environment, investors are faced with a falling dollar and rising inflation (as commodity prices). 1970s gold prices, increasing inflation in the middle of one of the best examples.

Reduce the dollar gold allowance because the international gold in U.S. dollars. Who are looking for (such as the central bank) in the purchase of gold investors have to sell their dollars to make this deal. The second reason to do the fact that a weaker dollar makes gold for investors holding other currencies who are more affordable.
Gold as a safe haven.

Whether in the Middle East, Africa or elsewhere tensions, which is gradually obvious, economic and political unpredictability is another reality of our modern financial environment. For this reason, investors often look at the golden age of economic and political uncertainty as a safe haven. Why is this? Well, history is full of empire collapsed, coups, currency collapse. At such times, who kept the gold investors can successfully protect their extensive and, in some cases, can even use gold to get rid of all the chaos. Therefore, whenever there is news of the occasion, prompting some uncertainty, investors usually buy gold as a safe haven.
Gold as an investment diversification.