Creating Wealth, Making Money, Investing Wisely, Pensions

Many people choose to invest in gold either by directly owning gold or buying shares in gold because as a resilient material, it tends to hold its value.  Obviously, the days of the gold standards in UK are gone but the concept is still there.  Obviously, currency and holding currency is not necessarily a secure investment.  We only need to look at the way the pound and the dollar have moved in relation to each other to see this.  Previously, the pound was worth $2 and now as of writing, it is closer to $1.60, so 20% of value lost.

It’s possible to achieve capital growth and therefore income by choosing public companies which are listed on one of the stock markets and purchasing shares in the company.  As you purchase the shares, you purchase them at a certain rate and once you’ve bought them, if that company performs and increases in value as a company, your shares price, which is the value of the company divided by the number of shares, will increase in value.