In my last explanation about importance of GOLD, @appone made a comment about manipulation in GOLD market.

Source

In reality, a market without manipulation is a market with nothing.

But we still have government regulations guiding GOLD trades in the world. Anyways, our focus is about appreciating GOLD by taking a peep at its history. In last post, I talked about four reasons why I want you to own gold too. Today, I will write about four other reasons why you should consider buying GOLD.

Perhaps you have read the first part of this article, and you want to own GOLD. Consider buying from Menē http://mene.com/invite/JrT26p

Geopolitical Uncertainty

Not only in times of financial crisis, but also in times of geopolitical uncertainties, GOLD retains its value. Elsewhere, it is call 'crisis commondity,' because people run to its safe harbour when there are tensions in the globe. During this time, it always outperform other investments. For instance, In 2017, GOLD experienced some price movements because of instability within the EU. It rises in price when citizens' confidence on their government is generally low!

Supply Constraints

This is will explain @appone question about supply of gold in the market. Most GOLD that you see around from 1990 upward are from sales of GOLD bullion from vaults of central banks throughout the globe. This sale by central banks slowed down in 2008 in same way production of new gold from mines has been reducing since year 2000. According to statistics from http://BullionVault.com, anual Gold mining output fell from 2,573 metric tonnes in year 2000 to 2,444 metric tonnes in 2007. In another report compiled by http://Goldsheetlinks.com, gold witnessed rebound in production when output hit 2,700 metric tonnes in 2011. Basically, it takes average of 7 years to start full scale gold production. As a general rule of demand and supply, low supply means price increase.

Increasing Demand

In last few decades, increased inflow of money into emerging market economies increased demand for GOLD. In majority of these countries, gold has mixed with culture. India is a good example, one of the largest gold users and holders' nations in the world, with many use cases, including jewelry. As a result, gold is used in Indian wedding season in October which is usually the month of the year when there is highest global demand for GOLD. In China, buying GOLD bars is a way of saving, and demand has been consistent.

Amongst investors, its demand has grown. Many businessmen now view GOLD as one of the commodities that is worth their money, so they allocate funds to it.

Portfolio Diversification

The best way to diversify is to invest into something that do not have close correlation with the existing investment. Historically, GOLD always have negative correlation with other financial instruments. Now take a look;

• 1970s was awesome for GOLD, but worse for stocks.

• 1980s and 1990s were extraordinary for stocks, not for GOLD.

• In 2008, stocks plumaged as people migrated to GOLD.

To limit effects of volatility, wise investors combine stocks with GOLD to reduce risk.

Conclusion

Price of GOLD can decline for awhile, but it retains it value over time. It has served as hedging tools in time of deep financial mess. Easy to store and portable. Investment in GOLD is worth considering.