Posts Tagged ‘gold investment’

Is Investing in Gold a Good Option?

My interest in investing was perked not by the prosperity of recent years but by the even more recent crash. Why did so few see it coming?

I looked to so people around me, real people who invest and have done well for themselves and asked myself what were they doing. Probably the most enegmatic investors recent choice was gold. Right now I know he is sitting in his home in Vietnam laughing at his good fortune, he had bought back into his favorite investment right at the start of the most recent surge.

Some of the factors that increase gold value are quite obvious, gold is seen as a safe haven when we enter a finacial crisis, currencies tumble, interest rates drop and banks fail it seems it is a perfect recipe for a surge in gold prices that we have recently seen. Gold is also an investment countries like to make and when emerging economies like India and China which are also growing quickly buy 10s of tones or more of gold it starts to look even better. The falling value of the US dollar is also having its effect on the value of gold.

Of course you don’t have to invest in gold directly, you can also invest in gold mining companies

Gold does not pay interest which puts some investors off it. I can undersand, not because it pays no interest but because only somewhere around 20% of all gold mined is actually used for anything, the rest of it just sits in a vault filling investment portfolios or on your wifes finger. You could say that gold stored in the ground is no less useful than gold stored in a vault, the process of mining it for anything other than consumer use is really a a complete waste of resources.

Regardless gold proves to be a good investment and unless there is a massive shift in the shared concious of humanity it will never be revalued according to what it is actually used for. As a starting point for those new to the market I think gold is a solid investment, it is definitely something you should always consider depending on market conditions. I think even those who don’t like the idea of it realise that as a purely numbers game and a safe haven it has proven its worth.