The Best Kept Secret of the Wealthy… Gold!
Gold prices are climbing, while the value of the dollar continues to decline. As people scramble to decide what to do with their investments, smart investors are buying gold.
Why?
Portfolio manager for First Asset Investment Management Inc., John Stephenson, says that it’s been the best investment in the last decade.
As you can see in this graph from the World Gold Council, gold has steadily increased from 2001 through 2011.
Stephenson projects that gold investment will be the best investment for the next decade. Gold prices rise as the dollar declines.
In the past year, the dollar has fallen because of the suffering economy. Gold investors have benefited greatly and are expecting to gain even more as prices rise, according to Ned Neylar Leland, investment director at Cheviot Asset Management.
The troubled economy is just one of the reasons why the value of gold will rise.
- Higher demand equates higher prices. According to Blanchards, a leading investor’s resource, gold investments are increasing in popularity so the U.S. Mint has started rationing gold to meet the demands, and world central banks are buying gold instead of selling it.
- When reflation sets in, after deflation, gold value will skyrocket.
- Government spending continues to be a problem and that will continue to hurt the U.S. economy and devastate the dollar.
- The sovereign-debt crisis will result in a lower euro value and increase the value of gold.
Silver, Platinum, and Palladium
Gold isn’t the only precious metal you can invest in. You can also invest in silver, platinum, and palladium, which are all also seeing rises in values.
As you can see in the following graphs from Kitco.com, each of the prices of the precious metals has seen significant rises in value in the last decade.
Investment in silver, platinum, and palladium is much more plausible for the modest investor, as the gains and falls are not as drastic as with gold.
Did You Know?
- The World Gold Council reports Gold price has increase 294% from December 2000 to October 2010.
- The Council also reports, gold has reached a new high 22 times in 2010.
- Gold cost per ounce in 2000 was $279 and rose to $1,300 an ounce in 2010.
- From 1933 to 1967, gold’s value only rose 26 cents.
- Gold cannot be manufactured, it must be mined.
- Approximately 70 percent of gold is made into jewelry.
- Thirteen percent of gold turns into coins and is made available to investors.
- India is the biggest consumers of gold.
- South Asia imports 800 tons of gold each year and uses 600 tons of it to make jewelry.
*All facts from Discovery and World Gold Council websites
Investing During Economic Crises
The stock market is more unpredictable than ever. Interest rates are low and decreasing. The world’s economic structure is crumbling.
Isn’t it about time to do something with your money?
Instead of complaining about the economy and how you’ll never be able to see a return on your investments, make a change so you will see a return.
There’s no doubt that gold and other precious metals are rising and will continue to rise. The economy is troubled and there is no end in sight. If you’re waiting for the economic winds to change, you’ll be waiting forever. Invest now and relish in your profits later.
Ok, we’ve just covered a lot here – but I didn’t get into the good stuff yet! Buckle up, it’s going to be a bumpy ride on the next page…
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