Gold Investments. Material and Virtual

Updated: 02/24/2005 02:24
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It became the custom that communicating with you, dear readers we address to investors, who are most often exclusively e-investors. Why You chose this sphere, it's your business. Another thing is that in such a way commerce acquires 2 dimensions. Electronic and real - material. As the topic of this article we chose the analysis of difference between material and virtual gold investments.


We have already mentioned that gold is the most valuable in any circumstances, the most widespread investment tool from all the existing ones. You can invest to safety stock, oil, real estate, anything. Though, gold takes the first place in the rating of investment deposits. The reasons are clear - simplicity, transparency, relative predictability. Though it's not all. In the real world different variants of gold investments are possible for investor. These are jewelry, any coins, gold bullion and banking gold. Let's compare this investment tool in the real and virtual worlds.

The conclusion is as follows: lots of differences. It's doubtful, definitely. I even confess, this conclusion is rather provocative. Let me explain why. We'll start with the way we buy gold. Gold cannot be found on the counters of the shops, we can't buy it just going shopping to the nearest supermarket. The intermediaries serve for these purposes. Most often these are banks. Since gold is a valuable metal, much money is needed to buy it, which is not good to keep under pillow in the modern world.

And not profitable as well! Gold, purchased from bank… we can't even see! Here it is! The first distinction in kind. The only disadvantage of the network, sensed by many is that "goods" cannot be "touched" with hands. It does exists, but it's "virtual", that's why we use the term "virtual gold". Now let's think: "Can we hold in hands the gold, we buy in a bank?" No. the same way all the transactions are conducted indirectly. Without our direct participation.

Though the system of working with virtual gold is as a rule much more simple than with the material one, despite all the danger. Banking system presumes solving of a large amount of difficult questions, connected with heaps of papers. Even if the system is liberal to the maximum, nothing can compare with the opportunity to buy some gold, drinking juice, sitting on the beach, and wearing colored shorts. Is it true? That is why You can buy small "pieces" of gold. Sometimes even strikingly small… several ounces for instance. We exaggerate of course, but You can't do anything like that with a bank.

And the last one. Managing Your gold assets. Opening e-currency account, let's say, You also buy gold. That's why You can earn on buying gold. However, where else one can find such a simplicity and easiness as in the Internet? Nowhere. You can easily transfer them from one account to another, paying with "gold" wherever. Buy some more gold. Everything is more than simple to the limit. And - minimal interest for that.

Of course, all "virtual" gold is confirmed with the real one. No escape from that. Though, the fact it looks solely like a set of numbers in the Internet simplifies the system greatly. All the system. Both direct use and economic system as a whole (meaning HYIP, stock bidding, buy-sell etc.). That's, I suppose, the main advantage of virtual gold as means of investment, as the subject of investment and trade.

The only incontestable advantage of material gold is of course its security. No disputes allowed. The security indeed that differs in anonymity, hundreds kilometers of nameless wires and cashier partition is a security of successful bank existence. If making the system safe, why should anyone leave the house and go to a bank, if one can make anything by means of Internet.

But the thing is that banks themselves, will then provide their customers with opportunity to buy and sell via Internet. They will change their gold to "virtual". Another variant is possible: along with transactions' security there will appear security, to be exact reliability of e-merchants "associating", who will hardly perform such number of unpunished and absolutely anonymous "black" transactions and vanish utterly. Unambiguously, it won't be so easy. Let's wait, future belongs to Internet, and that is to e-commerce and virtual values, which… will never become exclusively virtual, without support of valuables, important for a person in the material life.


About the author

Eric Marriam is a young writer. Even though he is not experienced he is able to make really high quality work. Eric is able to identify a problem people have and break it down, able to appeal to emotion through emotive writing, can change style of writing to cater to different audience. Eric Marriam is able to work creatively and effectively with staff and managers and despite his young age, he proved to be a clear and effective writer and speaker, committed to maintaining quality and efficiency, seeking for professional growth and development.
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