As today’s tough economic times stretch across the globe many are scrambling and unsure where to invest their money. People are scared and looking for alternative investments. Gold has been a safe place to save your money and has not felt the negative fluctuation in the market that the stock market has. Gold has actually been on a meteoric rise compared to its past. Gold in December of 2005 was sealing at $515 per ounce. Today the price has rose to $925 per ounce. Anyone who had invested at the end of 2005 would look like a genius.
Gold does not lose its value. It is a safe beacon for many to look at as paper value falls and rises throughout the world economy. Right now many people are panicking in the stock market with the recent fall. Real estate is no longer the safe investment everyone thought it was so we as a global society are looking to see where it is safe to keep our money. The National Bullion Investors stated recently “Gold prices will rise next year as the financial crisis pushes more investors into the precious metal safe haven.” Gold already has reached the price they expected it to hit by the beginning of 2010. It has grown a full year ahead of schedule. A great quote about gold stated by Alan Greenspan “Gold is always accepted.”
There are two distinct views on the current increase in gold prices in this struggling economy. Before we get into these views let us go back and make sure people know how to purchase gold. Many times when people think of investing of gold they see a golden brick in their heads. Maybe they’ll start will coins and then move onto buying a brick. This is not how it is done. Gold is mostly sold just like stocks are sold. This way you do not have to store the gold or protect it from being stolen.
Now where are the prices of gold going to go? Well like I said there are two very distinct opinions that are out there right now. Throughout one has been that the increase in the prices of gold is not a temporary change. With people’s faith in paper currency they are viewing precious metals as gold differently. They are looking at it as a more stable option for them to invest in. Gold has risen lately but they see a leveling of a instead of a crash.
The second opinion is more pessimistic. When they have looked at the rate of increase in gold it has improved in value about 2% annually. That compared to an average mutual fund increasing 12% is dramatically different. Also the increase in dollars between an ounce of gold from 1983 to 2005 was $510 to $515. Now you didn’t lose any money but you didn’t get much gain on your investment. The people who look at the data in part two think that this might be a short term increase in gold.
Currently with people scared in the global economy gold has become a good investment. You are able to feel comfortable that you won’t lose money. Also currently you are looking at an investment that could make you money in the short term.
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