Gold is more often considered an attractive investment in times of greatest uncertainty, especially when traditional equity and currency markets are in a freefall. So why invest in Gold now when economies are strong and growing and the future looks so incredibly bright. But does it really?
Notice that the rapid increase in the price of Gold over the past few years, during an aggressive bull market, seems to contradict conventional wisdom. While a dramatic increase in demand accounts for most of the increase in the price of Gold, a closer look reveals other more sinister forces at work as well. Shadowing the increase in demand for Gold, less visible pressures driving up the price are consistent with a coming transition in world markets in which case we may consider Gold to be an economic barometer of sorts.
Traditional Gold investors are a hardcore group of diehards that seem to love the look and feel of the metal as much as it’s monetary value. While their somewhat fanatical zeal has been exonerated as of late with the tremendous performance of the Gold sector in the past few years, Gold investors are often still not taken seriously. Perhaps their cause is not helped by the perceived complex nature of acquiring this most ancient of prized precious metals. Buying Gold can sometimes be as difficult as withdrawing large amounts of cash from your bank account. Under the guise of monitoring for signs of money laundering and terrorist activities, governments have kept a sharp lookout for Gold purchasers. So buying and selling Gold is sometimes a little bit complicated. Unless of course you know how to do it right in which case you avoid all of the bureaucratic hassles.
But why bother with Gold at all when there are so many other easier markets to access? Well, just ask the folks who are sitting on nearly 30% increases since 2001. And if that doesn’t do it for you then the past year has been nothing short of phenomenal with the leading Gold stock indices up over 100%! Just try to find comparable success in the stock market, in any year.
Simply stated, the demand for Gold is significantly stronger than supply and prices continue to grow. In spite of most countries having divested of Gold as monetary reserves over the past decade, any resulting excess has been long since absorbed and even more Gold is on order.
But will Gold continue it’s meteoric rise? Bet on it. Literally. If world markets have created a shortage and are driving up Gold prices today then any potential economic decline will only further increase it’s value. Indeed, it is time to get some Gold. Buy Ggold in the form of bars in every conceivable size, or if you prefer, purchase Gold certificates equivalent to specific weights in Gold. Others will prefer to buy Gold mining stocks and derivatives. Buying Gold it turns out is a lot easier than we may have thought. Buying Gold in the form of bars or Gold coins can be downright enjoyable.
Who says investing has to be only about numbers and statistics, there’s nothing like the feel and appeal of a box of shiny yellow metal. Maybe it doesn’t hurt to have a little of your portfolio in a tangible form in this day of digital capital. Depending on who you ask, an investment portfolio should contain anywhere from 5% to 20% of Gold stocks, certificates or bullion. Buy Gold coins easily and quickly, (and discreetly if you pay with cash), in convenient one ounce denominations from virtually any coin dealer in your town or city. If you don’t mind putting up your credit card to buy Gold then it is as easy as a couple of clicks on the internet and it’s in your hands.
The bottom line is you need to buy some Gold, whether because you believe the economy will continue to grow and demand will increase or because you believe that another downturn is in the offing. In either case you win and there are scant few sectors where that is the case.