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Another circumstance that causes gold fluctuation is paper currency. Just like with the stock market, if an investor has less faith in the value of their nations currency.

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Money that does not fluctuate in value over time is said to be?

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Why does a bond's value fluctuate over time?

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What are the advantages disadvantages of investing in gold?

The primary advantage of owning gold is that there is no counter party risk to the value of your investment. Gold has been a store of value since ancient times and this is not likely to change. By contrast, an investor in bonds or stocks could lose their entire investment if a company goes bankrupt. Despite the fact that gold can fluctuate in value, it is almost impossible to imagine a scenario when gold would have no value. The disadvantages of gold is that it is a sterile investment in terms of producing income. An investor holding physical gold will only see a gain in value if the price of gold increases. Many investors who purchase gold believe that it is a safe alternative to paper currency backed investments since over time many currencies have failed or the value of the currency has declined dramatically due to inflation. For a more detailed explanation, please see my article on "How To Invest In Gold" (http://investing.answers.com/types-of-investments/how-to-invest-in-gold).


What is the value of one ounce of .999 gold?

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What value gold tooth 50 years old?

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