Many People Are Buying Gold For Safety
12:35 AM
Gold investing has always been popular among those that want to protect themselves from really hard times in the economy. Gold has indeed done better than stocks or bonds in the last couple of years and it has been a good choice to have at least part of your portfolio in it. However, with stocks doing so poorly, one might have thought gold would do even better than it has.
Anyone who doesnt have gold in their portfolio might take a look at it to see if it might be an option. The stock market has made a slight rebound and yet one has the feeling that stocks could start to head back down again anytime. The world economy has not made a recovery and more bad news could be around the corner causing stocks to plummet again.
A thing to note about gold is that its value has never gone to zero. For thousands of years, all civilizations have valued gold and the ancient Egyptians are one society that readily comes to mind. Since gold has always had value, many people take comfort in having part of their portfolio in it. While nothing is guaranteed, there have been times when it has easily outperformed the stock market and gold investors now hope that that will happen again soon.
It might be asked why the price of gold has not gone up more than it has in this time of extreme economic uncertainty. Those who have held gold for the last several years have been able to avoid the perils of the stock market but one would have though gold might have actually gone up significantly rather than pretty much treading water at the same price. It might be due to many investors having to cash in their gold positions in order to pay off other debts.
During normal economic times most people invest in gold by buying gold stocks or ETFs which are much easier than actually collecting the physical gold. However, due to all the scandals and uncertainty in the financial markets, more people have been choosing to buy real gold coins and gold bars. This presents a storage problem but some people are gearing up for really rough times ahead and feel safer with real gold in their hands.
Anyone who doesnt have gold in their portfolio might take a look at it to see if it might be an option. The stock market has made a slight rebound and yet one has the feeling that stocks could start to head back down again anytime. The world economy has not made a recovery and more bad news could be around the corner causing stocks to plummet again.
A thing to note about gold is that its value has never gone to zero. For thousands of years, all civilizations have valued gold and the ancient Egyptians are one society that readily comes to mind. Since gold has always had value, many people take comfort in having part of their portfolio in it. While nothing is guaranteed, there have been times when it has easily outperformed the stock market and gold investors now hope that that will happen again soon.
It might be asked why the price of gold has not gone up more than it has in this time of extreme economic uncertainty. Those who have held gold for the last several years have been able to avoid the perils of the stock market but one would have though gold might have actually gone up significantly rather than pretty much treading water at the same price. It might be due to many investors having to cash in their gold positions in order to pay off other debts.
During normal economic times most people invest in gold by buying gold stocks or ETFs which are much easier than actually collecting the physical gold. However, due to all the scandals and uncertainty in the financial markets, more people have been choosing to buy real gold coins and gold bars. This presents a storage problem but some people are gearing up for really rough times ahead and feel safer with real gold in their hands.
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