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In any financial institute there are three major risks in business: a risk that those who owe you money (debtors) will not pay you back, a risk that your inventory can't be sold for lack of buyers and that the price of your inventory is lowered by market factors (a good example will be when some computer stores bought too many Ipods when they first came out, to find out later in the months that Apple is coming with a better Ipod at a cheaper price). The first risk is impossible to find in the gold industry because like many natural resources they are not body's liabilities. Gold can't be affected by inflation or the domestic countries' economic and/or political policies. Let's jump to the lack of buyer's risk. Gold has an international market with variety of buyers, institutions, jewelers, coins, bars, certificates, structured products and exchange-traded funds are some ways of how you can sell your gold. The risk of not having a buyer for your gold is pretty slim. The only important risk that might affect buying gold is the market risk (price is lowered by other market factors). As we all have seen in the past, for example in 1980s when the gold price declined sharply.
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