Gold is at record highs, in terms of the euro currency. This is a according to Larry Edelson who is a financial analyst specializing in international macro-economics, and the precious metals and natural resources markets. He says what is happening to gold in Europe is a preview of what gold is going to soon do in terms of the U.S. dollar as well, as the severity of the debt crisis starts to be realized around the world. Paper currencies are devaluing, and investors are making a move to hard assets.
And it’s happening in Africa as well; Burkina Faso more than doubled its gold production in 2009, reaching more than 11 tons. They currently has five gold mines in production, which have created over 1350 jobs. Two new mines are expected to start production in 2010, and mining companies from Canada, South Africa, Australia, and Russia have acquired mining rights.
Experts are continually advising to invest in assets. When people think of ‘assets’ they usually think of Real Estate, equipment and big-money businesses. These are excellent investments, but I want to look at Tangible Assets.
Tangible Assets refer to assets such as works of art, coins, stamps, antiques, bullion, precious stones and furs.
Robert Kiyosaki teaches the importance of buying an asset, i.e. something that generates money. He explains that a house is a liability and not an asset as the house creates expenses (loan repayments, electricity, upkeep) without generating income (unless you rent it out). Use your money, wherever possible, to buy assets:
• Real estate (from which you earn rental income) • Stock • Business tools or equipment • Education
More posts on this topic to follow soon. To read articles by Robert Kiyosaki and other successful authors, click here.
