Some Things You Do Not Know About Gold

Ancient medium of exchange is re-explored here. Gold is now running on a bull market, caused by the rise of oil prices, unpopular Bush's war against the "terrors" as well as declining US Dollar value. Gold tends to trade opposite to the dollar and the dollar is about to resume its long-term decline.

Billionaire George Soros publicly disclosed that he had built a massive short position against the US dollar. Three months later his former partner, Jim Rogers, recommended that people buy gold to hedge themselves. Warren Buffet, the most famous investor in America, announced that he had bought a basket of foreign currencies to profit from a coming decline in the dollar. Although he didn’t disclose the size of his position he called it “massive” and noted that it was the first time he ever bought a single foreign currency. Buffett has an uncanny habit of making money in the stock market. In May of 2002 he bought $600 million dollars worth of puts on the S&P 500 that exploded in value when the stock market tanked later that summer.

He is now warning of an impending dollar crisis that could last for years. “Our country’s net worth so to speak, is now being transferred abroad at an alarming rate,” he said. “In effect,” he warned, “our country has been behaving like an extraordinary rich family that possesses an immense farm. In order to consume 4% more than we produce – that’s the trade deficit – we have day by day, been both selling pieces of the farm and increase the mortgage on what we still own.”

According to Mike Swanson, "the accumulation of debt in the United States cannot continue much longer. In the last century the ratio of debt to GDP hovered between 120% and 160%. In 1929 debt rose to 260%. Now the ratio of debt to GDP is at a mad 300% and has been growing over the past year. Something has to give."

Economist Mark Thornton, author of Tariffs, Blockades, and Inflation, agrees. He thinks investors need to pay attention to gold. "There is always a bull market somewhere in the economy. It could be junk bonds, real estate, a particular currency, tech stocks, foreign markets, land, blue chips, or small caps, " he says, "Today we are in a bull market in gold and commodities. Oil and gas are at all-time highs while metals such as silver are up more than 25% in 2004."

Not mentioning its economic values, gold has a variety of beneficial characteristics to electronics, and biologically too. Pure gold is too soft for ordinary use and is hardened by alloying with silver and copper. Gold and its many alloys are most often used in jewelry, coinage and as a standard for monetary exchange in many countries. Because of its superior electrical conductivity and resistance to corrosion and other desirable combinations of physical and chemical properties, gold also emerged in the late 20th century as an essential industrial metal. Other uses:

• Gold performs critical functions in computers, communications equipment, spacecraft, jet aircraft engines, and a host of other products.
• The high electrical conductivity and resistance to oxidation of gold has led to its widespread use as thin layers electroplated on the surface of electrical connectors to ensure a good, low-resistance connection.
• Like silver, gold can form a hard amalgam with mercury, and is sometimes used for dental fillings.
• Colloidal gold (gold nanoparticles) is an intensely colored solution that is currently studied in many labs for medical, biological and other applications. It is also the form used as gold paint on ceramics prior to firing.
• Chlorauric acid is used in photography for toning the silver image.
  Disodium aurothiomalate is a treatment for rheumatoid arthritis (administered intramuscularly).
• The gold isotope Au-198, (half-life: 2.7 days) is used in some cancer treatments and for treating other diseases.
• Gold is used as a coating enabling biological material to be viewed under a scanning electron microscope.
• Since it is a good reflector of both infrared and visible light, it is used for the protective coatings on many artificial satellites.

Raw facts gathered from bambooweb.com & wallstreetwindow.com

We can buy/sell/trade gold online these days. It's called e-gold. Rest assured it's 100% backed by gold authorities in New York and London (read more in https://www.e-gold.com), unlike the some other payment processors such as Stormpay. We can even trade merchandise or services using e-gold, as a medium of exchange. It's like we are going way back to the ancient times of trading, but in the modern internet technology environment.

I've finally found a site to exchange e-golds for Asian countries, where funds can be deposit into account to buy e-gold, and sell e-gold. I recommend these:

• Gold Age
• AsianaGold (an affiliate of Gold Age)

They have been around for years. E-gold is Fraudless and most stable payment processing in the market.