Price of Gold Hits Record High
Today the price of gold hit a record high at $1,043.30 an ounce, while the dollar dropped due in part because of a report that the Gulf Arab states were considering abandoning the dollar.
Countries like Russia, Saudi Arabia, Japan, China, and France have been rumored to be in talk, and there’s speculation that they may attempt to replace the U.S currency with a basket of currencies. This rumor has been denied by Saudi and Russian authorities.
If the Dollar continues to decline it could push the price of gold to new highs. Metals like platinum and silver have also seen gains as gold has climbed in value.
Gold Investing
Investing in gold provides great security in turbulent financial environments, especially considering its track record of maintaining long-term value. Often gold is not directly impacted by a countries fluctuating currency and credit risks. For these reasons and more gold is a secure investment that’s been proven reliable for years.
Over the past two hundred years gold has kept pace with inflation. In the last few years an investment in gold has greatly exceeded a similar investment in the S & P index 500 stocks. In fact since 1999, gold has increased in value by more than 200%, while a vast amount of stocks have actually lost value.
An interesting thing to note about gold investing is its ability to move independent of key economic data. Increasing your holding in gold can greatly offset a portfolios overall risk and protect you from stock price fluctuations. Diversification in gold is a great hedge against relying only on traditional financial assets like mutual funds, bonds and stocks.
You can invest in gold in a variety of ways. There’s gold mining equities which are often put together as gold-oriented mutual funds. Gold stocks, futures and mutual funds are another way to increase your holdings. In addition you can also buy physical gold bullion, gold coins, or bars of gold. Overall buying gold is a significantly less volatile way of investing during times of economic uncertainity and can be a great way to add much needed security to your portfolio.
Buying Gold in a Down Economy
Even in a down economy holding your savings in gold investments can protect your net worth. Unlike paper currency which can be printed on the whim of a politician, gold holds it’s value.
Most countries have removed their currency from the gold standard making paper currency subject to wild speculation and price flucuations. Thanks to a investment in gold you can secure your financial future.
