A Little About Investing In Gold

Investing In Gold
Investing in gold has caught on in an inversely proportional way to the trends with the national economy and markets. In other words, as the trends in the economy have taken turns for the worse, investing in gold on the other hand tends to pick up considerably, along with the gold price which follows suit when there is heightened demand.

There is a reason for this, and it isn’t a coincidence. There are those who understand the perpetually sustained value of gold, and the rock solid stance that investing in gold puts them in, particularly during a time of economic downturn or uncertainty.

You may wish we still had gas prices like they were a decade ago, or the cost of groceries etc. Paper or Fiat money succumbs to those fluctuations with inflation and all the global market trends and speculations. Inflation, which appears to be an escalation in prices is in essence the buying power of the currency in reference on a downward trend, or becoming devalued.

Gold on the other hand remains in the same respective value over all so far as buying power is concerned, pretty much throughout the millenia, meaning it essentially rises in value accordingly to inflation as this is one asset that has historically shown to perform that way.

For instance, were you to have an ounce of gold in the early 1900′s, you would be able to afford a nice suit at that time with it’s value, and the same holds true today. Now you can just imagine the difference in dollars with the cost of a nice suit in 1902 and 2012, where the same portion of gold in weight carries the same buying power in both instances.

You may ponder how to make such a comparison, and the answer is easy. One ounce of gold will bring you the same amount of goods in each instance, and close to the same in the time in between. Now take dollars. Of course the dollar amount will be vastly different in each instance, yet the value of the dollar is another element that comes into play, which is what gives rise to inflation, and thus the buying power of $20 dollars 100 years ago has a nearly equivalent buying power as $1600 today, both which are the price of gold 100 years ago and today respectively.

The fascinating aspect of gold is how, even with a particular currency struggling, during that time, the value of gold actually rises.

This is what wise investors are aware of, and why many always invest in gold and precious metals, and especially focus towards physical precious metals and tend to turn paper investments into more of a secondary investment to commodities during times of erratic trends within the markets and global economies.

Investing In Gold

Investors aren’t the only forward thinkers in this aspect either. If you watched some of the decisions various nations made as a whole, such as India and China in particular, you’d see that they stocked up on gold tremendously in recent years. China even loosened national policies for ordinary civilians to procure their own precious metals.

Gold isn’t the only precious metal you want to consider either. Silver for instance has seen some pretty spectacular growth in recent times, and is more accessible for individuals whom gold is a bit out of reach for. Some would even speculate whether silver isn’t the next gold.

One increasing popular way to invest in gold, silver and other precious metals such as palladium and platinum is through an IRA account. Through a self-directed IRA, you take control of the account and decide exactly where the funds are placed.

You have the option of investing in certain types of coins and bars that are qualified through IRS rules. There are many other investment options in this form of retirement account as well.

I highly recommend you research this, and suggest not waiting too long. You may not necessarily want to panic and move everything to gold overnight, as diversification is always a good idea.

Though if you are looking for that edge in how to shield your portfolio from risk, I would advise you look into investing in gold and other precious metals in addition to other investments. You have the option of buying your own gold and other precious metals and storing them yourself, and that’s another consideration.

If you’re slightly new to this market, look over some historical price trends and make your own assessment. There are times of volatility, yet there are also consistencies that can be detected, and when it comes to buying power there is a less linear way of determining this, as other value factors come into account.

Below is a very extensive video about the economic climate, some historical analysis and speculation about some choices you can make looking into your future, and some considerations why investing in gold may be a very smart move for anyone to make in the near future.