As several economic and political crises play out around the world and in the United States, Americans may be waking up to buying gold. Posted by James Randolph on November 23, 2011
Americans Waking Up to Buying Gold?
November 23, 2011 – As several economic and political crises play out around the world and in the United States, Americans may be waking up to buying gold. Persisting problems from the sovereign debt in the European Union connected to banking problems in the United States itself have made it generally accepted that the time of “green shoots” has passed to the possibility of a “double-dip” and then on into “get your gold and get out of dodge.”
Of course, the last sound bite is courtesy of yours dearly and puts a little humor in the sentiment, but the adage is becoming more accepted in the minds of Americans. The bailouts are failing domestically and abroad in one form or another. The fundamental problems in the banks, businesses, and economies of nations have not been solved yet. It’s time to take proactive measures to protect yourself and your family.
Americans seem to be getting that message. Curiously, young Americans seem to be tuning in as well. An article from the LA Times this week points out a growing interest in gold not just in the baby-boomer generations, but in investors in their 20’s and 30’s. The article cites a series of booms and busts, a housing market collapse, and continued problems in the banking sector for 20 and 30-somethings. With the activity of the financial industry lately, the younger generations need a little more than the promise of paper and the abstraction of financial derivative assets.
While demand for gold is up about 6 percent on the year, we will not really know until after the New Year how many people are going into gold now. It was just recently reported that central banks broke multi-decade records in the third quarter, and they’ve been net buyers of gold for over two years at this point.
There is a gold lining in every storm cloud and it heartens investors with their ears to the ground to discover that Americans, and especially young Americans, are waking up to gold now. With a 21 percent increase year to date, gold has outperformed the S&P by 24 percent and is the best performing asset of the past twelve months. Americans are moving to safe and sound money in gold now.
Senior Staff Writer – Certified Gold Exchange