The Poor Man’s Gold
Gold has gotten a lot of attention in the news media lately. The reason why is because gold prices have hit historic highs. If you were to buy one troy ounce of gold it would cost you about $1,325! In some cases one ounce of gold looks like a large coin. Just one of these beautiful coins will cost you about $1,325!
The reason why gold has received so much attention is because of inflation. Gold is a natural hedge for inflation. It holds its value against a dollar because gold is actually money. Gold has been used for currency for thousands of years. Empires went to war over gold.
In an economic environment where there is a little uncertainty, gold tends to be the metal of choice as a hedge. When there is concern about the stock market and inflation, investors tend to run to precious metals in order to keep the value of their money. So far the rich and investment companies are investing in gold in large amounts. The recent interest in gold due to the concern of inflation has caused the price of gold to hit all-time highs. Goldman Sachs has even forecasted that gold will be at over $1,600 by next year.
In the last ten years gold has increased its value by over 300 percent! If you purchased an ounce of gold in October of 2000 it would have cost you about $270. Fast forward to 2010 and you could have made about $1,000 on your gold investment.
There is no doubt that gold is power hedge against inflation and economic concerns. The concern over inflation is one of the main reasons we have seen such a demand for gold. Gold is in so much demand that there are companies wanting you to sell your gold to them. There are commercials and banner ads offering you cash for your gold. Even in the hood there are signs everywhere wanting you to depart with your gold.
Even Mr. T has been hired by a company called Gold Promise in order to encourage you to sell your gold. I wonder why they hired Mr. T? Mr. T is smart. He has always been a believer in gold. Mr. T has over almost a million worth of gold but he is not selling it. So, why should you sell your gold? If gold prices are set to increase and inflation is a reality, you should be trying to buy gold not sell it. The Bureau of Economic Labor Statistics released on October 15, that CPI increased by 1.0 percent. The major increase was in food and energy prices. In order to protect the value of your money, investing in precious metals is a great idea.Continued on the next page