From century to century, gold has long been the true “standard” for investors simply because this bright yellow alloy is a highly sought-after precious metal which has had “immense value” before recorded human history. So, is gold a good investment to include within your portfolio? Let’s ponder deeper into this topic.
A major element of investment in today’s uncertain economy is linked to the gold standard for various governments and the International Monetary Fund. Since the 1940s, gold has had a fixed exchange rate that has steadily climbed to well over $2,000 an ounce in recent times. Thus, with today’s sharp growth in world economies, and gold still playing a major role in both US and foreign exchange rates, the world’s reserves will always trade in gold stocks, coins, bullion and even gold jewelry.
Gold Investment Still Shines Bright.
Today’s savvy investors know that gold is still considered to be a top investment because it is a symbol of lasting value and purity and prestige. In turn, there are many holders of gold who use bullion, bars or coins as a good investment hedge against today’s uncertain global economic market. For instance, a top gold investor commented online about always having a gold allocation as high as 30 to 40% because “gold is protection against global uncertainty.”
There are different types of gold investing that include the following:
- Gold exchange traded funds (ETFs). This popular means of adding “gold exposure” to one’s portfolio is hugely popular with investors today because ETFs is both allocated and unallocated by a custodian or bank, while being traded as gold futures on Wall Street.
- Gold traded notes (ETNs). While many savvy investors say that ETNs are a bit more risky than other gold investments, ETNs are viewed as “flexible” method for investors who trade them short or long.
- Gold bullion. The investors who enjoy buying physical gold such as bars, jewelry and coins say they enjoy this type of investment because you can purchase gold of this type for as close to the price of the current gold rate as possible. Thus, an investor who purchases gold coins, such as the American Eagle and American Buffalo, can rest assured that it will return a top premium.
- Gold jewelry. While investors are not hocking their family’s gold jewelry for the sake of a good investment, there is a widespread point of view that purchasing top quality gold jewelry is “always a safe investment.
- Gold mine stocks. Because today’s gold mining stocks have a reported 3-to-1 leverage to today’s gold spot price, this type of gold investing is usually left to those savvy investors who specialize in researching and they buying small gold mines on speculation about striking lots of gold. Still, the global gold production has been on the decline since 2000, state Wall Street insiders, and this means “gold mining stock could bounce back big time.”
In general, there is always a good way and means to buy gold today with the many gold investment firms and gold custodians offering their services online.
Should I Buy Gold Now?
While gold investors are busy watching stock prices rise to all-time highs, there is always a chance for precious metal investing to drop a bit due to gold’s open interest falling at times when the economy remains uncertain.
Still, the gold market is trending.
Wall Street reports “trillions” in gold being sold and invested monthly around the world. For instance, more than $1.2 trillion was added to the value of global stock markets in May; while Goldman Sachs just swapped nearly $600 million worth of gold with the country of Ecuador recently.
At the same time, Wall Street insiders have commented online about more and more investors jumping on the gold market and finding it exciting and profitable. The allure of gold investments come at a time when the U.S. economy is rebounding, and the housing market booming. In turn, this is making investors more upbeat about their precious metal holdings as the demand for “safe-haven gold” increases.
Gold Prices Remain Strong.
While the price of gold and other precious metals has climbed to unbelievable highs in recent years, there are investors who often assure other investors online that this is not just pie in the sky. Although, a strong gold market may dip a bit, it will always be strong when it comes to regular gains. “There is a huge interest in gold at the moment,” stated a gold custodian commenting on an investment website recently. He noted how Standard & Poor’s Index of gold shares “continued to gain strength in 2022.”
The S&P Commodity Producers Gold Index includes the largest publicly traded companies involved in the exploitation and production of gold and related products worldwide.
Gold’s open interest for investors “has never been better,” added the custodian when explaining how many retirement investors are converting their individual retirement accounts (IRAs) into various gold investment shares.
Overall, there has never been a better time to consider gold as a safe bet for investing in today’s uncertain world economy.