Let’s figure out if there is any other valuable thing beside Gold that is preferred more for storing wealth?
In my opinion, I don’t really think that stocks, bonds, real estate or any other thing now a days can be the best option to store a good amount of wealth, compared to Gold.
People in China give more priority to Gold than in other country, they think Gold is a “safe haven” when there are fears of ultimate inflation.
Forbes have said something in detail on the same topic – read few lines of it below:
The price of gold is r oaring back from its latest temporary correction, sending the bears into full withdrawal. If you sold your gold in December as it fell to $1525 an ounce, you’re probably feeling foolish at the incredible $210 rise to $1735– a 15% move in no time at all.
Gold, you see, is not a commodity like oil and copper and wheat. It is rather an alternative currency– one that finds buyers when paper currencies like the Euro are being hugely increased in supply by the ECB to forestall a sovereign cum bank crisis in Europe. There’s $650 billion in European bank and sovereign debt coming die before March 31, 2012 which can be sopped up by the $650 billion gift from ECB to the banks at the bargain rate of 1%. And more available from the European central bank– Europe’s very own Quantitative Easing program.
As the supply of gold cannot keep up with paper money(supply increases very little despite exploration), and it can be bought without loss of any real interest income, it seems clear t hat the gold bull market is alive and well. Central banks obviously are of the mind that gold’s rise will make up for t he decline in paper money and the lack of income on central bank liquid investments.