Investors Leave Emerging Markets

This year, emerging markets are not as cheap as they used to be in the past, especially
compared to developed markets. However, they are at least representing the countries that
have some real GDP growth. If you decide to buy stocks in the West then you are
actually buying into the economies that are paralyzed by political failure and debt. When
you are buying into emerging markets though, you are buying into the economies that
have high-growth economies, which have vibrant democracies and have skilled
governments that have a complete knowledge of economics.

Emerging markets though are not cheap at all. The premiums for the developed markets
are quite small and sometimes it is hardly enough to compensate for the high governance
risk in the average emerging market. These emerging markets are growing faster than
those in the West and the reality is that the short term performance is about money flows
while the long term performance is about the price (the cheaper you buy, the better it will
be in the long run).

We all know that China’s economy is one of the most powerful economies in the world,
alongside India. There is one thing that we should notice in China: the investment sector
that is way ahead of the demand: the empty shopping malls, the apartments that are not
sold and so on. However, those that are interested in making sure that they invest in
something right, then buy gold and any other
sort of gold investment represent the best choice.

The massive debts in Europe, the weak dollar and the fact that no commodity or asset is
sure, have determined investors to turn towards gold. Of course, this has been the best
hedge for inflation for a very long time, but during the last couple of years, the price of
gold has skyrocketed.

Investors are always trying to find new markets and new assets to invest in and it seems
that gold investments (physical gold, gold funds etc) and emerging markets have made it
to the top of their preferences. When countries like China and India are investing in gold
why shouldn’t be follow suite and do the same thing? They are protecting themselves by
diversifying the Central National Bank holdings and this is really a good thing. For those
interested in diversifying their portfolio, the best option that they have is to start investing
in gold funds.

The Chinese government has been against people owing gold, still for some time now,
they have been advising them to invest in gold. If they decide to do this then why
shouldn’t we do the same thing? Surely there are numerous ways in which we can make
gold investments these days. One of the most popular methods is by investing in gold
funds. However, there are other ways that we can invest in gold to, such as gold ETFs,

physical gold and in some parts of the world, even gold jewellery is considered an
investment. These days, to make things even easier, you can even buy gold online. When
you have found the best online dealers then you can start to make investments in gold in no time.