Gold time now!
Gold is most often seen as an attractive investment in times of heightened uncertainty, especially when traditional stock and currency markets are in free fall. So why invest in gold now when the economies are strong and growing and the future looks so incredibly bright? But really?
Note that the rapid rise in the price of gold in recent 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 that other, more sinister forces are at play as well. In the shadow of rising demand for gold, the less visible pressures pushing up the price are consistent with an upcoming transition in world markets, in which case we can look at gold as a kind of economic barometer.
Traditional gold investors are a stalwart group of die-hards who seem to love the appearance of the metal as much as its monetary value. While their somewhat fanatical zeal has lately been exonerated with the tremendous performance of the gold sector in recent years, gold investors are still often not taken seriously. Perhaps their cause is not helped by the perceived complex nature of acquiring the oldest of the 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 signs of money laundering and terrorist activity, governments have been on the lookout for gold buyers. So buying and selling gold is sometimes a bit tricky. Unless, of course, you know how to do it right, in which case you’ll avoid all the bureaucratic hassle.
But why bother with gold when there are so many other markets that are easier to access? Well just ask the people who are up almost 30% since 2001. And if that’s not enough for you then the past year has been phenomenal with the major gold stock indices up over 100%. Just try to find a comparable success in the stock market, in any year.
Simply put, the demand for gold is significantly stronger than the supply and prices continue to grow. Even though most countries have shed gold as monetary reserves over the past decade, any resulting excess has long since been absorbed and more gold is still being ordered.
But will gold continue its meteoric rise? You can count on that. Literally. If world markets have created a shortage and are driving up gold prices today, any potential economic decline will only further increase its value. In fact, it’s time to get some gold.
Buy gold in the form of bars of every size imaginable or, if you prefer, buy gold certificates equivalent to specific weights in gold. Others will prefer to buy gold mining stocks and derivatives. It turns out that buying gold is much easier than we thought. Buying gold in the form of bullion or gold coins can be downright fun. Whoever says investing has to be all about numbers stats, there’s nothing like the feel and appeal of the bright yellow box. Perhaps it doesn’t hurt to have a bit of your portfolio in tangible form in this day of digital capital. Depending on who you ask, an investment portfolio should contain between 5% and 20% stocks, certificates, or gold bullion. Buy gold coins quickly and easily (and discreetly if paying cash), in convenient single denominations from virtually any coin dealer in your town or city. If you don’t mind putting in your credit card to buy gold, then it’s as easy as a couple of clicks on the internet and it’s in your hands.
The bottom line is that you need to buy some gold, either because you think the economy will continue to grow and demand will increase, or because you think another recession is coming. In any case, you win and there are few sectors where that is the case.
