Make no mistake about it. Gold is not dead. Most of the news you get regarding precious metals may not be that accurate. Some media reports are even short of acumen and perspective on the topic of gold. Arguably, the global financial system and many countries’ central banks have varying perceptions regarding gold. All told, gold remains a valuable asset and good investment option.
What are the Reasons?
Give weight on value and not the market price of this commodity. Consider gold as asset insurance and not a permanent resource. As a matter of fact, some economists describe gold as the most potent currency in the universe.
Price should not be the sole factor if you plan to invest in this cherished metal. Gold still is among the best buying prospect for today’s generation. This is true notwithstanding the decline of gold prices by another seven percent and an aggregate weakening of 22 percent from a peak of $1,891 four years ago. At this point, many analysts stand firm on their forecasts of $2,500 to $10,000 within the next few years.
Gold basics are very sound. All fingers point at gold investing in the midst of currency volatility, weak debt in many countries including the United States and European Union, stagnant economic progress, low wages, and flawed economic policies. It does not look like debt will get smaller in the medium-term or budgets will be balanced soonest.
By and large, gold investing is realistic and considered an optimal choice for savvy investors. Potential for profit is great with prices possibly reaching more than $2,000 per ounce. Of course, it is an effective barricade versus inflation with lower downside risks. Moreover, central banks will continue acquiring physical gold as diversification from the USD. Gold is now being recognized as currency worldwide and going mainstream. Besides, there is no liability to worry about since it is an asset minus counter-party dangers and debts. In short, gold guarantees genuine value despite negative advice of media.
The central banks of India and China are stashing gold at unprecedented levels. The reputation of gold for centuries in wealth preservation remains unblemished. Forget about the comments of speculators. In the long-term, practical investors have more chances of being rewarded by maintain gold assets in their respective portfolios. Currencies will flounder and stock markets collapse. This is not the same for gold which is perceived as the moderate choice for investments. Look at its record as safe haven for the last 3,000 years when economic systems fall and paper currencies plunge. It is worth staking your money with more secure resources such as gold in today’s volatile world.