The financial world is crumbling all around us and it seems that nothing the governments are doing can stop this from happening. The currencies are devaluating, therefore the demand for gold and other precious metals is going steady. Gold has been in a bull market for more than 10 years and it seems that things are not going to change in the near future. There are numerous reasons why this is going to happen and some of them are: currency devaluation, global economic decline and the basic supply and demand fundamentals. Therefore regardless of the form that you choose to invest in gold: kilo gold bars, gold bullion coins, gold stocks or gold ETFs, you should make sure that you take this step as soon as you can.

Central banks all over the world have started to print more and more money in order to make sure that they keep the global economy afloat and most likely things are going to continue in this rhythm for the months to come. They will have no choice but to devaluate the national currencies whether through the low interest rates or through liquidity injections. When this happens and the dollar becomes weaker and weaker, then the price of gold will increase.

Because the banks are printing more and more paper money and they are pushing it in the economy in order to support the financial institutions, the national currencies of the countries are beginning to lose their value. This is already happening therefore, the inflation has reached unbelievable heights. Both the inflation and the devaluation of the dollar are bullish for the prices of gold. As such, 2012 is a good year to start investing in this precious metal either in the form of physical gold such as kilo gold bars and gold coins or in the forms of paper gold, such as gold stocks or gold ETFs.

The demand for gold, especially from the Asian market is huge and it is continuing to grow. Emerging markets, led by China are very interested in investing in gold in order to create a hedge against inflation and diversify the non-dollar denominated assets. This high demand for gold will continue to drive the prices for gold. Another factor that will lift the price for this precious metal is represented by the uncertainties in thee Middle-East.

Gold is the best hedge against inflation and against all the uncertainties on the financial market. Therefore, you should start looking for ways of investing in gold as soon as you have the chance.

By: JacquelineBrewster

http://www.goldmadesimple.com/