Anything that increases in value and is profitable in the foreseeable future can be termed an investment. A variety of commodities such as currency, precious stones, metals, real estate etc. are used as an investment. These commodities are affected by various market forces and each of these has a unique utility from an investor’s perspective.
Among metals, gold has been the most sought after metal since ancient times. Demand for Gold has only increased with time and this makes it an attractive investment option. Gold investment has been on the rise in recent times. Gold investment is used as a hedge against inflation and currency crises. There has been dramatic rise in demand for gold in Asian powerhouses. India and China lead the pack in gold investments.
Whereas the demand for gold has risen rapidly in recent years, production has not kept pace with the rising demand. Gold production has been decreasing in recent years and traditional players like South Africa and Australia have not been able to reduce the deficit in production.
Due to the high demand, gold mining stocks have been on the up in the stock market. Some of the best gold mining stocks are BRIGUS GOLD (BRD) AGNICO-EAGLE, ELDORADO GOLD, GOLDCORP and BARRICK GOLD. These companies have seen an increase in business and their stocks are expected to rise in the future. The important gold mining countries are China, USA, Australia, Peru and South Africa. They share about half of the total world production.
Gold investment has been one of the most lucrative investment options. Production and mining of Gold has been a profitable venture. The future holds enough promise for the gold industry and a surge in demand in the years to come.