Friday, 31 August 2012

Gold - A Smart Investment?

Gold is a precious metal which occurs naturally and has a high economic value in commodity markets.

Investing in precious metal like gold, more specifically in physical gold, is a good hedge against economic downfall. Given the conditions of the global economy, the devaluation of the US dollar is still impending. However, the downward spiral in currency value can be hedged to secure wealth in the US setting through gold investments.

Using Gold As Investment
The federal government is currently trying to improve central bank credibility through increasing its asset purchases or quantitative easing. However, this does not guarantee anything as inflation is still predicted to be approaching. All the government can do is to delay this process.  Thus, we have the option to take the matter in our own hands by having our own reserves of wealth and investments in the form of gold.

Investment opportunities in gold are currently flourishing especially in the US, where national policies are favorable to those who have already started investing in the metal and will start to invest as soon as possible. There is no better timing to start now.

There are several opportunities in this trade that yield large profits. One of your options is buying stocks in gold-mining. This form of investment depends on metal yield of the mining companies you invested in and the US dollar value.  Another is acquiring gold mutual funds which are rather expensive and have profits that are historically fluctuating. You can also engage in gold exchange trading funds (ETF). This type, like the previous two, is dependent on prices of gold in the commodity market. Thus, it does not guarantee that your investments are secure from financial disasters.

Therefore, it is highly recommended to invest in the tangible material like gold bullions and gold coins, which are highly collectible. Owning pieces of the precious metal is a more secure manner of investment which secures high profits even in times of imminent inflation and currency devaluation.

Here are examples of physical gold which you may get a hold of:

·         Gold bullions are of high purity, usually 99.9% and can even go up to 99.9999%.

·         Gold coins are highly collectible and have high aesthetic value.

Physical gold needs to be handled with care and stored in proper and secure places as they are of extremely high value. You can secure them in personal safes or in banks.

Now is the best time to secure your wealth and ensure profit. Now is the time to get matters in your own hands and not depend on government movements for economic stability. And ultimately, now is best time to invest in gold.


  1. It's good to know that apart from investing in stocks or saving money from our own personal accounts, we could actually put our jewelry and ornaments(particularly gold) into good use. Those family heirlooms we hold dear, that have been passed on from every generation could ensure our financial security, even potentially increase its market value over the years.

    Inflation is not far away, we could never really tell. It is safe to say that owning gold reserves provides stability, since it doesn't change value when other markets drop.

  2. This article is a great resource by the way. Thank you for posting yet another informative write-up.

  3. Physical gold is the safest investment to be done in a world of anticipated inflation and currency devaluation. When the economy is already in a downturn, everybody would want to secure their wealth for the long run. If you are investing even in buying stocks of gold mines or mutual funds, then your wealth will still be at risk of the market price of gold. Therefore, the best way is to invest on gold bullion and gold coins, so that your wealth is saved for the future.

  4. Our currency is slowly losing its purchasing power. We have noticed how vast the inflation rose in years. And it will steadily rise over time. According to economists, the annual inflation rate is more or less 7%. It would be no surprise then, if our paper investments right now lose its value 10 to 15 years down the road. Given these facts, hedging on gold would be a great investment option. It’s a solid defense against economic downfall and currency devaluation. With financial instability and recession threatening our economy at every turn, it’s better to be armed and ready than to be sorry.

    It’s a great post. Thanks for sharing.

  5. Great resource you have here. Now I just wanted to add to the conversation that I have read SO many investing books that state that the value of gold will always continue to go up or stay level but will never go down. So in other words gold is a very wise investment. I was very drawn to this article simply because investing in Gold is a huge interest of mine. Thanks for the post!

  6. I didn't count about the asthetic value of gold adding to its price .. I will remember to buy a few coins this time (though I will do more homework)

    Gold is cool .. in India, returns are to the tune of 22% .

  7. In the world today of currency devaluation and fluctuations, investing in the gold regime is the best method to save our capital resources. We can, now, use our generation’s old inherited ornaments. If we invest in the gold company shares or mutual funds, our wealth is at stake due to the fluctuations of gold market rates. SO the best option for investing is to buy gold coins and bullions

  8. Collecting physical gold as a form of investment sounds like a good option. I had always believed that making purchases of stocks in gold mining companies or ETFs was the best way to invest in gold but this article makes some good points that I hadn't considered before. If you can collect your own reserve of gold bullion, then you can have a more secure investment that isn't at the mercy of the highly volatile market.

  9. Another great article, gold metal is considered as a safe haven, a value of "refuge" placement "insurance" that crosses eras and economic imbalances, financial, political, social and environmental. Attention, it is not to put all eggs in one basket and invest all his capital in one asset: the diversification of heritage experts generally advise to protect just 10-15% of its assets in the precious metal

  10. "The advice you offer here seems invaluable. When most people begin to find means of financial investments they tend to jump at the first opportunity they come across. Research is key when making smart financial decisions and I feel this article provides an excellent stepping stone for me while I continue my research."

  11. Gold was always been the precious metal and now in this financial turmoil, it has become the topmost interest for investors. This is a very good news that the USA government is giving more concern to the investment in the gold. It would definitely be the best for the investors who are thinking to invest in the gold and this is the high time to do that. I always believe that investing in gold is a wise way to keep the worth of your funds. If there happened any worse for a little fraction of time, at the end it comes to the normal condition and that’s the plus point of investing in gold.

  12. When all else fails in the global market, it is liberating to know that it is still possible to preserve our wealth since there is still another way to invest and even the safest way which is gold investment. Thus, our financial destiny does not actually depend on the global economy since it is quite possible to have financial independence through building our wealth by investing in gold. Furthermore,there is no better time to invest in gold than now!

  13. I can confirm the profit on investing money on gold rather than investing in the market. Because the market is highly unpredictable however investment on gold is almost safe. Writer used the term ‘solid investment’. Because it is found in survey that even when price of market falls, the price of the gold boosts. Especially when economic recession has covered the glob there are no safe investments other than gold. I have to appreciate the article to successfully make us understand the necessity of investing on the gold.