Recent Gold Investing Trends Show Quick Profits Taking Backseat to Safety Posted by Brian Ford on September 17, 2013
Gold ownership is sometimes thought of as something that people do when they feel the need to be flashy but recent data points to another reason that people invest in gold – safety. Until a few years ago most people thought that buying real estate was the best way to protect one’s wealth. Cut the mortgage crisis. Others believed that savings accounts and government bonds were the best way to preserve capital. Near-zero interest rates discredited that belief fairly quickly. U.S. stock markets are another area of investment that many considered to be safe, at least over the long-term. It has now become apparent that a terrorist attack, error-prone black box trading and even something as simple as a hacked Twitter account can shock the Dow and NASDAQ fairly easily.
Investors have started to turn to gold out of necessity. People are buying bars and coins so that if and when the dollar loses value gold will offset those losses. The days of buying gold stocks and financing gold transactions with hopes of huge windfalls are, for the most part, history. Institutional investors and investment banks that are allowed to experiment with clients’ money still deal in gold derivatives but people like your CPA, local business owners and retirees are now focusing on preserving what wealth remains after the financial crises that have afflicted most of us in one way or other during the last decade.
The spot price for gold investing is at $1310, a number that has decreased some 25 percent in the last year. Yet security-minded investors who understand the fundamentals of gold versus the dollar remain firm in their resolve to keep physical gold in their hands, as should any investor who fears that the spending habits of the United States will eventually cost the dollar its solvency and our nation its sovereignty. To stay up-to-date with gold and silver prices follow us on Twitter @CGEINC or Like our Facebook page at facebook.com/CertifiedGoldExchange for discounts and special offers.