Gold and silver have continually risen over the last several years and especially in the last few days. The reasons for this are complex and manifold, but they deserve a closer look. Once we know why gold and silver are going up, we should then have a better idea of whether or not to get involved in these investments.

In order to understand why gold and silver are rising, it paradoxically requires us to look elsewhere than gold and silver. The dynamics of mining, refining, and related supply-side economics are relatively stable and have had no sudden drop off in recent months. The demand for these two metals, on the other hand, is what is driving the rapid rise in these two metals. But what is driving the demand?

It is gold and silver\’s status as safe-haven metals that is driving the demand. The reasons why these precious metals have this status are incredibly sound. Gold and silver have been used by human societies for a very long time for stores of value. Today, it is no different. Gold and silver are important commodities traded all around the world.

However, there has been a shift away from gold and silver relative to the past. Wealth has instead flowed into the stock markets, houses, consumable, other commodities, businesses, governments, and increasingly into government debt. The share that gold and silver have of total wealth is much smaller than in the past. However, even with a relatively tiny sliver of the wealth of investors being stores in gold and silver, they still are wonderful and important metals–especially during times of crisis.

Now is a time of crisis. Actually, to be literally correct, now is a time of crises; one and only one crisis would be a blessing to the world economy. Currently, the United States debt has reached very high levels while the growth of their economy has been slowing down once again. It will be impossible–if it isn\’t already–for the US to raise enough in taxes to pay off enough of their government debt to retain their AAA rating. Once this rating goes, the cost of interest for their government debt will increase, which will further damage the economy.

Europe, too, has huge piles of debt and a lagging inability to pay them off. Countries have been bailed out but there are limits to the amount of money that can be given to struggling countries. There is a breaking point to all artificial economic structures; the Euro is one such structure. Already it has reached new lows against gold and the Swiss franc. Future developments will likely push it still lower.

These instabilities spur people to invest in gold because it is much more safe than these currencies and also government bonds. Also, the governments and people of China, India, and South Korea have begun buying lots more gold. This increases demand, which increases the price of gold. The dynamics that make gold go higher have only begun to manifest. As a result, it is time to get involved in gold. Investing in gold coins and bars through BullionUK–http://www.bullionuk.com/products/gold–is a convenient way to diversify your portfolio while increasing the purchasing power of your wealth in the short-, mid-, and long-term.

Oscar Heath invites you to learn more about Investing in Gold Coins. We really have a special opportunity to buy gold. The economy is slowly but surely showing signs of greater and greater strains. For your Free Gold Investing Guide please visit http://www.BullionUK.com.

Oscar Heath invites you to learn more about Investing in Gold Coins. We really have a special opportunity to buy gold. The economy is slowly but surely showing signs of greater and greater strains. For your Free Gold Investing Guide please visit http://www.BullionUK.com.

Author Bio: Oscar Heath invites you to learn more about Investing in Gold Coins. We really have a special opportunity to buy gold. The economy is slowly but surely showing signs of greater and greater strains. For your Free Gold Investing Guide please visit http://www.BullionUK.com.

Category: World Affairs
Keywords: bullion, gold coin, gold price, gold bullion, gold price