With economic recession seeming eminent, even the big market players are looking for safer alternatives with latest trends suggesting that everyone is taking a humbling lesson from the past and looking at traditional investment avenues of gemstones and precious metals. It seems that market analysts and financial brokerage firms have finally realized that gold is “The Metal” that can guarantee financial safety in these fickle times.
How gold differs from other investment alternatives of paper stocks, bonds etc is because of its basic nature and inherent value that none of the paper shares or equities possess, ultimately they are just printed on papers and if markets crash so does their worth; an equity share of a bankrupt company is worth nothing whereas a gold bar or coin even in the worst of times would be worth at least something.
With changing times and changing investment factors, the market outlook towards gold has changed too and unlike bonds, assets and property undergoing continued depreciation, today they are not regarded as safer investments, where as gold on the other hand is, gold’s been gaining steadily and many analysts peg it to cross its previous highs and be pegged somewhere around 2400$ an ounce.
Gold’s always been something that has fascinated men through the ages hence we have so many stories and tales with pirates and kings, hidden treasures and what not all revolving around gold alone. Gold’s been known to man for a long time and many serious thinkers and visionaries have commented on it from Aristotle to George Bernard Shaw. Gold’s the perfect medium for money it does not rot; it can be divided into smaller parts according to convenience unlike paper money which if you tear up loses its worth completely. Gold’s the safest in terms of carrying you can carry thousands of dollars worth of gold in forms of jewelry. You can even transform gold into objects like a drinking flask and have it silver painted on the outside and no one will notice its real worth, now that’s something that cannot be done with other forms of money whatever they may be.
It’s because of these inherent factors that even an economies worth is measured by the gold bullion deposits it has, giving even more reason for an investment in the same. The value of gold remains the same more or less and is not affected negatively by market trends on any level, if at all the price of gold go through the roof in times of economic instabilities and even history has been a testament for the same indicated by high prices of gold during the Great Depression and economic instabilities in the 1970’s.
In conclusion I would like to say that with Wall Street teetering and Main Street teeming with people with pink slips in their hands, it’s no wonder that investors are returning to gold. Gold stores have reported an impressive surge in sales as even the common man tries to take control over the financial turmoil. So the right thing would be to make sure you include around 8-25 % worth of Gold in your investment portfolio to see through the tough times ahead if you haven’t already done so, because given the current state of affairs gold seems to be the only asset that would maintain its worth and purchasing power in times to come, in the same manner as it has always done in its illustrious history making it the king of all metals.