It has been a reliable source of profits, and served as a secure reserve.
Then why has the thinking process of these investors has changed all of a sudden? Why do not they trust the government, and the blue-chip business? The answer is simple yet deep, the current world economics.
These days, people prefer having solid metal in their hands instead of these pieces of paper, as they are considered not only more reliable, but also as their time value may change in a lot more profit, and they are easily convertible to cash without following any complex steps.
The overall economic turmoil around the world has been caused due to various reasons, which have resulted into insecurity in the minds of people.
These reasons include global politics, wars, and inefficiencies of leaders, pollution, natural disasters, and global warming.
All these causes have resulted in a situation where recession is all over the place.
Even the biggest companies, now frequently experience economic crunches resulting in non-employment.
The above-mentioned events have caused a sense of insecurity in the minds of public about money.
Now, people cannot trust even their own governments and banks when it comes to conventional assets, as they think that they may lose their value any day, resulting from an unexpected series of events.
Such events are common these days due to bizarre world politics, where everyone is hungry for power, money, and quickly diminishing natural resources.
Another confusing issue for a normal person is the fact that first world countries, especially America, have governments, which have the capability to print money at a rapid speed.
These nations cannot possibly face the problem of funding wild expenditure plans solely from reserves, or taxation.
The rise in gold price is another important factor why investors are abandoning conventional assets.
If you buy a piece of gold today, you may be getting double the price back if selling it after a year or so.
The value of currencies keep on fluctuating at a rapid pace, but this is not the case with gold, which is always increasing in value in most of the cases.
Gold is also rare, unlike paper money.
That is why it has a greater value, and the investor feels a lot more secure, as it has comparatively a lot lesser fluctuations.
The inflation due to these economic conditions has eaten away the world economy like iron is eaten away by rust.
Take the example of the two biggest currencies of the world that are US Dollar, and British pound.
Both have lost their initial value by 95% in the last hundred years.
On various occasions, leaders, and economists have tried to raise the value of economy, and remove this economic crisis, which have caused a sense of insecurity in the minds of people regarding conventional assets, but their efforts have not been fruitful.