Buying gold during a rescission its a good idea Research Paper

Buying gold during a rescission its a good idea - Research Paper Example At the same time gold prices are raising sharply and many of the current investors believe that investments on gold may bring better returns to them in future. This paper argues in favor of buying gold as the safe investment option during a recession period â€Å"When you see the Fed start buying their own treasuries from China and Japan, hyperinflation and default will be just around the corner. Gold and Silver provide the peace of mind one will need whenever that day arrives† (Eberhardt, p.26). Even though the prices of gold and silver experienced certain ups and downs in the past, no major collapse of gold prices has been reported yet. Most of the emerging countries like China and India are purchasing more gold and keeping a good gold stock. When we compare the current stock market conditions and the conditions of the banking industry against the current gold industry trends, investments in gold seems to be the right option. â€Å"When it came to the extreme stock market c onditions, people ran to the safe haven of gold† (Eberhardt, p.146). In order to learn more about the potentials of gold as a safe investment option, it is necessary to identify the differences between money and currency. Many people are of the view that both money and currency are the same things. This is an illusion. â€Å"A currency does not store value in and of itself.