We all have heard the saying "Old is Gold" and in the past past when there was boom in every sector it did appear that "Gold" has become "Old", and there was no point in going for something that old. We had so many sectors to look at where the returns we just fab. Buy today hold for a few weeks and sell it you make a good 15% -20% margin on that. What more do we wanted. I know friends who have made some killing returns on real estate and commodities like this. But … no body thought in the wildest of their dreams that all that boom period is short lived and there will be a burst.

"Boom" went the economies and now nothing gives any return. Oil which was around $ 150 is $ 45. So is copper, corn and what ever you name. Value of treaties is the same. I am not talking about the Zimbabwean Dollar …., I read somewhere that they are introducing a Zimbabwean Dollar Trillion note. Sorry to say but the guys there (permissions) look crazy to me, what are they trying to prove, a Trillion Zimbabwean Dollar note. I have a 100 Billion one which I bought as collection item and that itself looks quite stupid.

Any way, we were talking about the stable currencies, the likes of USD, EUR and GBP. Look at our dear British pound which was 1 £ = $ 1.89 and is about 1 £ = $ 1.30 today. Against the Euro it is one-to-one. Reports are saying that the pound may go one-to-one with the dollar.

I live in UK and what does this mean to me. I have to confess here that I am no financial / economic expert but my plain and simple mind says that British economy is heavily dependent on imports, almost all the things which we have are imported from various countries and I am sure that the majority of payments are made in USDs. What would that mean if the pound goes one-to-one to the USD. I think it means super duper expensive products, the veggies, the meat almost everything. It really makes me nervous to think that the import costs will be so high if the pound becomes equal to the US dollar.

Now …, I have been reading a lot of articles form various experts about what to do in this time of crises and how to save the money. The devaluation of pound is so rapid that very soon all the fun of going to New York for shopping will be gone (if it has not already) and shopping in UK itself will be tough. Various experts have been suggesting various ways to save money. I have also done my calculations and have the following in mind. The oldest method which has been adopted for centuries by humans to fight inflation has been Gold. People have always found that no matter what comes, Gold always remains the most precious of all and in the time of crises people look at gold as a savior. I have calculated gold with the sliding pound is mind and have the following ….. today the Pound is $ 1.30 which means that for every pound I get £ 1.30. Now if I buy gold which is $ 900 per Troy Ounce I will be spending £ 692 (900 / 1.30). Now, lets presume that the pound and US dollar have become equal. What would that mean to Gold which is $ 900, will not it be £ 900 also since a pound will buy an equal amount of dollars.

This in fact means that the value of my Gold becomes to what it will be in Dollars. Supposing the Gold price is still $ 900. Since pound and dollar are equal wont the Gold price be £ 900. If this is true what it means mean …. the gold which I bought for £ 692 will be worth £ 900 although in the international market the value of the pound has gone but locally I will be getting more pounds, is not it ? Even if the gold prices remain stationary which is highly unlikely to happen, just the sliding pound will give me a good return.

Analysts are saying that the Gold should be touching the four figure per Troy Ounce mark very soon. No wonder there is such a heavy rush in the shops that sell Gold coins, try getting one and you will see what I mean. I have been in touch with a few friends who have bought or are trying to buy gold coins and I am amazed to learn that they just can not find any. There is a premium on some!

Therefore friends, it's time to get a bit worried about the pound and start thinking about where to invest so that we do not reach a negative equity status. I think in the current scenario we can easily say that "Gold is Gold", lets get some as an investment.

Hey, by the way, Valentine Day's around, why not buy a Gold Coin for your loved one? You know we women just love Gold anyway!