NUCAPITAL PRECIOUS METALS CC
Financial Services in Cape Town

For thousands of years and across many cultures, gold has been respected for its rich history and value. It is evident that people throughout the ages kept gold for a multitude of reasons, but we will tell you why you need to keep gold today. Unlike paper currency or other assets, gold remains a solid means to preserve wealth and to create a legacy to pass onto future generations. The fluctuating U.S. Dollar, being one of the world’s most important reserve currencies, has caused many to reach for the security that gold offers. The decline in the U.S. dollar occurred for a number of reasons, including the country's large budget and trade deficits and a large increase in the money supply. Gold has proven over time to be an excellent barrier against inflation. When cost of living increases, so does the value of gold. The Dow Jones index is a barometer for the rest of the world due to its size and extent of influence on companies worldwide. Deflation is a decrease in the general price level of goods and services. During this time the economy is burdened with excessive debt. Much of the supply of gold in the market since the 1990s has come from sales of gold bullion from the vaults of global central banks. At the same time, production of new gold from mines had been declining since It can take from five to 10 years to bring a new mine into production. As a general rule, reduction in the supply of gold increases gold prices. Gold is intertwined into the culture in many of these countries. India being one of the largest gold-consuming nations in the world shows an increase in demand for gold every year during their wedding season. Many are beginning to see commodities, particularly gold, as an investment class into which funds should be allocated. In fact, SPDR Gold Trust became one of the largest ETFs in the U.S., as well as one of the world's largest holders of gold bullion in 2008, only four years after its inception. Gold should be an important part of a diversified investment portfolio because its price increases in response to events that cause the value of paper investments, such as stocks and bonds, to decline. Although the price of gold can be volatile in the short term, it has always maintained its value over the long term. Through the years, it has served as a hedge against inflation and the erosion of major currencies, and thus is an investment crucial to any portfolio needing protection from an economic implosion. Nucapital Precious Metals Industries was established to provide the market with an alternative investment to paper based investments.