Over time gold has proven to be a a durable asset. Recent opinion is that gold remains a sound investment especially in the current economic climate.

George Yo, a senior figure in the gold bullion trade, claims that “gold will always retain its relative value”. It is seen to create a financial security which other investments just can't seem to provide.

Since the introduction of the gold bullion standard in the late 1920's, many countries have traded gold with this system in order to enhance their businesses. Investments in stocks and shares can be risky but gold is is seen to “serve as the perfect asset until it is sold”.

Looking back at the history of gold bullion, businesses are seen to be investing in gold as a possible option of not only strengthening them but as a way of saving the future of their company.

Due to the expanding economy in Asia, gold prices look to be on the rise. In London and New York gold rose to a record high. Speculation has it that the increase demand in Asia for jewellery will support this rise.

China, it appears, is the first of the big nations to rebound from the prevailing economic crisis and global recession. With the current increase demand for jewellery in China and the introduction of a stimulus package,consumption and lending appears to be on the rise.

In the second quarter of this year the economy in China grew by 7.9%. This has lead to speculation that China might “overtake India as the world's largest gold consumer this year”.

It’s been reported that Gold dealers in India are stocking up on gold bullion in order to meet the demand of the forthcoming festival and wedding season.

India is the world’s largest consumer of Gold and experts are predicting that, with gold prices at their highest level for more than six weeks, there could be a rush to stockpile supplies.

The period between October and December are traditionally the most buoyant for the Indian gold traders because of the Diwali, the festival of light and the wedding season.

Buy Gold because according to financial experts has great appeal as an alternative investment.

Gold prices have been struggling to rise since almost breaking through $1,000 per ounce recently and this has led some observers to predict that it may drop below $900 an ounce.

At present the price is around $920 and ounce and as the Head of Precious Metals at the Bank of Nova Scotia pointed out gold is more alluring than paper monry. Other financial experts have joined with him in predicted a optimistic future for gold prices, saying that the price of gold will be pushed up by investment demand which is strong at the moment.

The first six months of 2009 saw sales of gold bullion and silver bullion coins rise sharply. Although sales have continued to be strong they have levelled somewhat in late spring and early summer.

Early indications point to there being another rise in the coming months. Bullion coins allow investors to add to their portfolios in a convenient and cost effective way. They also give investors the opportunity to buy in small amounts.

How sales of gold bullion and silver bullion rise and fall over coming months will very much depend on the global economic crisis. It could prove to be a very good time to buy gold.

Three reasons to buy gold:

1. Security – gold is a very secure investment because of its intrinsic value as a tangible product.

2. Liquidity – in times of political turmoil or high international inflation gold’s liquidity is stable.

3. Diversification – gold is a good element to include when you wish to create a diversified portfolio spreading your risk across different investments.

It used to be difficult for ordinary individuals to buy gold bar. Now it’s just getting easier and easier with the introduction of novelties like the German gold vending machines but more significantly the online market which has simplified the process of how to buy gold.

As the fear of the dollars weakness continues and the international economic situation persists – the popularity of gold as a safe investment increases. In turn the price of gold has strengthened.

Gold has come close on several occasions in recent months to rising above $1,000/oz. Some experts expect it to go as high as $2,000/oz in coming months!

It’s a very interesting and exciting time for gold and those wishing to invest in gold or sell gold.