WHY BUY GOLD ?

1. Gold is considered as a “safe haven”, thus has an intrinsic value particularly precious in today's economic environment, where any market valuation may collapse.

Unlike the currency market, gold is the only international monetary value safe from governments’ control. Thus, its value depends less on political and economical governments decision than currencies.

The same goes for the stock exchange, the worth of the shares and stocks depends a lot from the results of the companies they represent, and beyond, from the overall economic context.

However, gold keeps its intrinsic value.

Such crisis lasting since 2008, the most severe one since 1929 recession, tells us about the fragility of our monetary system as well as companies’ stock. Thus gold is a safer investment. Evidence to this is that international banks do not stop investing in gold, and this in proportions never seen before, thereby supporting the growth of the stock exchange.

Today, to invest in gold as banks do, doesn’t only protect your properties but spare yourself a lot of risks.

2. The price of gold, in both the short and the long term, is bound to grow further

Why investing in gold is a fine investment in the short term:

• There is a considerable uncertainty on our financials, especially considering how fragile most Western economies are, including ours. The risk of a collapse is the highest in 80 years. This threat constantly adds funds to gold, allowing its value to grow.

• Western economies are starting again to be inflationary, as they do in every time of crisis. Despites the fact the West had managed to restrain prices to increase for decades, they currently rise in a lot of countries. Especially since this inflation is mostly driven, beyond the financial crisis, by sustainable drivers, such as Asian economy, especially China. Its growth creates strong demand for raw materials and energy. Thanks to this, oil and raw materials price strongly grew during these past few years. Thus manufactured goods’ production price grew too, since they need energy and raw material to be done, thus requiring higher prices from the companies who sell them.

This inflation, both structural and conjunctural, lowers money’s worth (since the same amount of money gives you less and less good).

Therefore, the same amount of gold is worth more and more money.

Why investing in gold is a fine investment in the long term:

• Demand for gold is guaranteed: beyond its current use as safe haven, gold is a raw material for jewelry and industry too, which has no substitute. Jewel appeal is, and always had been based on gold preciosity. Especially since the emergence of new wealth in high-growth countries such as China, Russia, or India, creates demands for top luxury products. The jewelry sector asks near 2000 t of gold every year. And the industrial sector, which asks nearly 400 t of gold every year, doesn’t have any substitute in its use of gold, since gold possesses unique material properties (heaviest, most insulating, most conductive).

• Gold is not unlimited: according to the World Gold Council, there is only 153 000 t extracted so far. Today, according to the same organism, there is only 60 000 t of gold in the World left to be extracted. It leaves us with less than 25 years if we extract only according to jewelry and industry annual use. And less than 15 if we do so according to the annual demand of investment gold (“financial” gold).
Assured intrinsic demand + increasingly rare offer = bullish price trend.

3. French gold taxation may be very appealing

In France there is a gradual exoneration at the rate of 10% per year from the 3^rd year of the added value tax (it’s the only investment benefiting from this system). Therefore, after 12 years of possession, you are totally exonerated from taxes!

However, be careful: during the next months or years to come, in order to save money,, the French government may put an end to this note-worthy taxe break.

So to take full advantages don’t delay your investment for too long!