You might be wondering why you’ve been hearing about gold so much lately. Truth is, many banks, governments and investors have been stocking up on gold since the economy became unstable. The situation in both the United States and Europe is making the investment landscape extremely slippery. Real Estate, stocks, bonds, mutual funds and virtually every other traditional type of investment is not giving investors a good return.
Should I invest in gold?
It is generally a good idea to diversify your portfolio as much as possible. No one knows for sure that the future holds for gold, but it’s looking promising right now. What you have to understand is that gold tends to behave in an opposite manner as paper currency. When the dollar and euro are weak, the dollar goes up. If you invest in gold as part of a well diversified
investment strategy, you can only win!
How is the value of gold determined?
unless we develop the technology to be able to go mine other planets, the demand for gold will always be higher than the supply here on our planet. This is one of the main reasons why the value of gold keeps increasing. You can learn more here. Also, keep in mind that the 2 biggest countries, namely India and China, are the biggest consumers of gold. Their demand for gold keeps rising year by year. Even their central banks now prefer to stock up on gold instead of stocking up on the US dollar.
How to invest
There are different ways you can invest in gold. You can buy various gold bullion coins, bars or you can invest through your 401k or IRA. Is this last option news to you? You’re not alone, it seems that many Americans ignore that they can invest in precious metals through their retirement account. If you own a 401k, speak to your HR department to see if they allow gold holdings through their custodian. If not, you can always open a self-directed IRA only to invest in gold.
When is the best time
Yesterday. The predictions for gold prices this year are good. Many expect the price to reach $2k per ounce by the end of the year. Time is not on your side when it comes to gold investing. Gold will most likely never go back the price it was at 10 years ago. Speak to your investment advisor to discuss your options. Try to invest through a gold dealer that can store the gold for you in a secure location. Holding the gold in your basement is definitely not a good idea. The risk factor is too high!