Gold investment offers an attractive store of value in times of uncertainty caused by factors such as global political instability, the war against terrorism, weak stockmarkets and US dollar volatility.

Investing in gold and gold-related companies with their low correlation to other assets offers an opportunity for true diversification within investment portfolios.

The demand for gold as an alternative investment asset increases when confidence in paper assets declines - this is particularly relevant when investors are faced with weak stockmarkets and generally poor corporate profitability combined with questionable accounting practices.

Gold has a negative correlation to the US dollar and typically increases in value as the dollar weakens.

Gold is a proven hedge against inflation and deflation.

The gold market supply/demand fundamentals are attractive with global gold production peaking and the economic environment supportive of continuing investment demand.

Small/medium capitalisation gold producers offer the opportunity for above average growth potential.

Gold is still inexpensive relative to financial assets on a historical basis and can be seen as being despite recent rises - in the early stages of a long term bull market.

Important factors helping gold prices are:

1. Underperforming equity markets — gold is negatively correlated with the S&P 500.

2. Deficit spending and zero real rates of return on T-bills trigger a weaker dollar.

3. Gold mining companies have announced a continued reduction of hedge programs.

4. Continued presence of physical demand despite real price rises.

5. Renewed fund interest has seen hedge fund position on COMEX rise to levels seen in 1996.

6. Changes in the supply side due to falling new gold mine production are bullish for bullion prices.

K-Gold® is a cyber metal held in your own secure account at KemetWorld Precious Metals®. But it costs LOTS of money!
Alternative:
KGold® - You can use metros to purchase, but the KGold® value is still tied to the value of the global world gold market.