“The only Gold” was the headline in a major business newspaper in the past week. Because in the face of the financial crisis, many experts are already talking of a lost decade for the economies involved. This is often a cross-comparison to Japan and its problems after the Asian crisis.
The question remains: Is it really? The DAX Index stands at approximately 7,000 points, the German economy’s complaining on a high level, and the Federal Ministry of Finance is happy about record tax revenues.
So where is the crisis in Germany?
However, all these facts should not obscure the fact that such a crisis can never go so quickly past us. Currently, the German economy is still, like a bulwark against the crisis, however, this is far from a Situation which must stop. It is to be feared, on the contrary, that the German economy will cool down in the Wake of the crisis in the next two quarters of the year, and then more fears of a recession will prevail.
However, as an Investor can now protect Gold?
Considering the development in the value of Gold in relation to forms of alternative investment, so you can quickly see the Benefits. For example, Greek shares have lost since 2007 to 86.5% in value, so the price of gold rose in the same period 146,10%. Also in relation to German equities (-5%) and the growth market of China (-40,8%), the eternal metal see.
Figure: development of value of selected Investments since 2007
The above relation also shows how important it is that you basically have a mixture of forms of investment in his Portfolio, and this broad set up.
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Sources: Bloomberg; Holger Zschäpitz (only Gold)helps
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