Gold and other precious metals are assets that are both tangible and liquid (i.e. easily traded), unlike real estate which is tangible but not liquid, or company shares and bonds which are liquid but not tangible.
Considering its high density and high value per unit mass, storing and transporting gold is very easy. Gold also does not corrode. Historically, it was also very easy to verify that an offered coin had the density of gold through the use of Archimedes' principle. Today, however, some metals are denser than gold yet cheaper. While some think gold deserves special treatment based on its cultural value and use as money, others consider gold a commodity, like copper or lead.
With the gold ETF (exchange-traded funds) the growing precious metals as gold, its financial assets have become increasingly prominent.
U.S. third-largest gold company's gold enterprises, chairman and chief executive Ian Telfer on the 6th • Reuters in New York in the global mining and iron and steel industry summit, said that people seeking to preserve and increase the things not only because Inflation, of which there are financial interests-driven factors.
At present, and gold-related securities, the development at an alarming rate. Reuters reported on the 6th, the World Gold Council to promote the establishment of the four gold ETF in the past six months the scale, an increase of 50 percent. Gold bullion ETF allows investors are holding storage and insurance do not have to bear the responsibility, investors can direct the sale of gold stock accounts. This greatly increased participation in gold trading in the market enthusiasm.
May 11, the international spot price of gold had reached 730 U.S. dollars an ounce, a 26-year record high. After gold was down nearly 16 percent. Over the same period of gold absorbed by the gold ETF only reduced 3.5 percent, to 14.5 million ounces.
