By Fred Peters
Why invest In gold is a common question that more and more people are asking today. With interest rates at all time lows and the United States economy in a recession, people are looking at alternative stores of value other than paper currency.
However, prior to going out and buying gold, or shares in gold mining companies or in gold ETF funds, it is important to understand the reasons to own gold. Gold is not an investment like buying shares of stock. It is a storer of value. It will not be worth more tomorrow than it is today. What? The value of gold is constant. Instead, it is the value of the dollar and inflation that makes the price of gold go up and down. Fundamentally it offers a way to protect the value of your savings.
As the value of the dollar goes down, it takes more dollars to buy one ounce of gold. The value of gold is not going up. Instead, the value of the dollar is going down. This means that a gold dealer will want more dollars to buy the same ounce of gold because the dollar is worth less.
Two Reasons To Buy Gold
1. Gold serves as a protection against the collapse of financial markets and the stability of paper currency. This collapse can be caused by economic problems like recessions and depression or due to government instability.
2. It offers protection from inflation. Inflation occurs when it costs more paper money to buy a product. Owning gold protects against inflation.
There are multiple ways to buy gold. Some investors buy gold ETF funds, gold mining companies or gold bullion. Other investors like rare gold coins as collectibles with the hope that such coins go up in price as their numismatic value increases.
For more information about investing in gold coins, check out my coin collecting blog. You will find great information amount gold bullion coins and rare gold coins.
For investors who don't want to buy physical gold bullion, here is an excellent article on gold ETF funds.
Article Source: http://EzineArticles.com/?expert=Fred_Peters
Posts
No comments:
Post a Comment