Let’s face it, the economy stinks and there isn’t an end in sight. So what should we do about this situation when it comes to investing our hard earned money? Well, some investors have turned to gold.
The Benefits of Gold Investment
You’ll be surprised to learn about all of the benefits of gold. I didn’t believe it myself until I started to research it and then discovered how lucrative it can really be compared to investing in paper. Check out these benefits:
Stable and Steady Increase History
If you look at the chart below, you’ll see how gold prices have remained either steady or increased over the last 10 years. Even when the economy was doing better than it is now, gold remained at a stable price. That means, the people who invested in gold, still didn’t lose much money when the economy was doing well.
Why is the economy such a huge factor in gold? Well, when the economy drops, gold prices soar. Investors have found comfort in gold when paper lost its value and this has been the case throughout the last decade.
Experts Report Increase Well Into 2014
While there has been a slight decrease in gold prices in the start of 2012, experts report that gold will bounce back and will continue to increase all the way up to 2014 and possibly beyond.
More Options to Invest In
If you want to invest in gold, you have many more options than with paper. You can invest in gold coins, gold bullion or gold stocks. Deciding which type of gold investment to pursue will take some research on your part. There are benefits and disadvantages to each of them and it really depends on what type of investor you when you make the choice.
Add Gold to Your IRA
Have you looked at your 401K and almost choked because of its decline? You could always invest in a gold backed IRA. People with gold backed IRAs have seen either steady worth or increases in the past few years. That sounds much better than what you’ve been seeing with your IRA investment, right?
Portable Investment
Gold is accepted all over the world. You can take your gold and sell it to just about anyone 24 hours a day. You can also buy gold whenever you’d like. With the ability to purchase gold online, you can simply jump on the Internet, choose the amount of the investment you want to make and then purchase it.
Just know, that if you do intend to purchase gold online, always research the institution you are buying it from. The Internet is filled with scammers and with this type of investment you want to choose a company that you can trust.
Making the Decision to Invest In Gold
If you’re new to the gold investment world, it’s common to feel apprehensive about it. It’s not something everyone does, but it is something that many wise investors do.
If you aren’t sure about it and just want to dip your toes in the gold waters, you can always purchase gold coins. These gold coins are normally worth less than investing in other forms and you can then see how your investment does because you decide to invest further.
The other benefit to gold coins is that they are very easy to pass down to other generations. So, if you decide to, you can hand them over to your grandchildren so they can learn the amazing benefits of gold investment for themselves.
So, do you invest in gold? If so, how? Please share.
Guest Post Author Bio: This guest blog was written by Marcelina Hardy, a personal finance blogger spreading the knowledge of gold investing.
5 Reasons Why You Should Invest in Gold — 29 Comments
As you can see by the graph, the time to invest in gold was in January of 2000. Gold rises in value as the economy declines. We are at a low point in the economy and once it bounce back, the demand for gold will diminish and subsequently the value. My 2 cents 🙂
Yes you are right. However, I think we are in store for another economic crisis and that this has just been the beginning. With that in mind, now would be a good time to invest in it.
That’s true if we do have another big dip. I don’t like that there is such a premium you pay over the spot price if you buy coins. And I’m leary of buying the other types of gold. Maybe someday. I do fantasize that someday I’d like to put a gold coin in each of my kid’s & grandkid’s Christmas stockings and watch their reaction! Now if only I had a crystal ball, I’d know exactly when to buy!
Holygeez… yes, agreed 100%. Keep it to yourself. Also there are alternatives like GoldMoney that will hold your gold for you in a secure vault. Not as accessible as having it in your house, but it’s insured and protected against private theft.
I dabbled with gold in the early 2000’s. As usual, I got out too early. With that in mind, it’s hard to get back in as I remember those rock bottom prices.
I would think the best time to invest in gold would have been around 15 years ago. Oh well 🙂
In general, investing decisions are all about your overall plan.
Interesting article, however I’m in Warren Buffet’s camp when it come to gold. It doesn’t produce or do anything. I think investing in food production is a better way to go right now.
Maybe you are right. I think investing is tricky no matter which way you look at. All I know is that diversification is key. As far as food production goes, unless it is sustainable, I don’t want any part of it.
I fully believe in Kondratiev’s economic theories about long waves which would mean that stocks and real estate should be the next places to invest as we enter the long wave of spring.
To anyone reading this post: I HIGHLY recommend googling “FOFOA” and reading his stuff. This site offers a unique and very insightful perspective into gold that I have not read anywhere else.
My grandmother always said to invest on gold: its value only increases in time so you can’t go wrong with this kind of investment.
Sure you have to make sure to also place your money in medium and high risks funds, but for safekeeping gold is king.
I write to share my two cent worth opinion that we should include gold as one of our financial hedging tools against inflation.
with increasing pressure on high inflation throughout the world, there is much opportunity of reaping profit is much higher than loss in the mid and long term.
As you can see by the graph, the time to invest in gold was in January of 2000. Gold rises in value as the economy declines. We are at a low point in the economy and once it bounce back, the demand for gold will diminish and subsequently the value. My 2 cents 🙂
Yes you are right. However, I think we are in store for another economic crisis and that this has just been the beginning. With that in mind, now would be a good time to invest in it.
That’s true if we do have another big dip. I don’t like that there is such a premium you pay over the spot price if you buy coins. And I’m leary of buying the other types of gold. Maybe someday. I do fantasize that someday I’d like to put a gold coin in each of my kid’s & grandkid’s Christmas stockings and watch their reaction! Now if only I had a crystal ball, I’d know exactly when to buy!
We would all love a crystal ball when it comes to investing. I think we are headed for another a dip so now just may be the time to buy.
That’s crazy. I honestly don’t know what goes through people’s minds sometimes. Robbing a friend. Yikes!
Holygeez… yes, agreed 100%. Keep it to yourself. Also there are alternatives like GoldMoney that will hold your gold for you in a secure vault. Not as accessible as having it in your house, but it’s insured and protected against private theft.
It is so sad the measures we need to take these days to safeguard our stuff. Just goes to show the state of our society.
Guess not. Shows you that you really need to know your friends well before you trust them.
Gold is/has peaked, and I would stay away right now.
This was a guest post. I am no expert in gold. However I have heard both sides of the story these days. It is hard to know what to do.
I dabbled with gold in the early 2000’s. As usual, I got out too early. With that in mind, it’s hard to get back in as I remember those rock bottom prices.
I don’t think you were the only one who had this issue. Many people got worried and pulled out.
Right, even if gold is in bubble, in 30 years from now it should end up higher, when i retire. I need to have gold in my IRA.
Yes you should. Even if it is a small amount.
I would think the best time to invest in gold would have been around 15 years ago. Oh well 🙂
In general, investing decisions are all about your overall plan.
Agreed. I think no matter what we want to invest in we have to look at the big picture. It is the only way we can make a good decision.
Interesting article, however I’m in Warren Buffet’s camp when it come to gold. It doesn’t produce or do anything. I think investing in food production is a better way to go right now.
And what do dollar bills produce and do? You need to look outside of Warren’s box to see gold’s utility to market actors, and why it has value.
Maybe you are right. I think investing is tricky no matter which way you look at. All I know is that diversification is key. As far as food production goes, unless it is sustainable, I don’t want any part of it.
I fully believe in Kondratiev’s economic theories about long waves which would mean that stocks and real estate should be the next places to invest as we enter the long wave of spring.
Interesting. I will have to familiarize myself with those theories. Thanks for sharing.
To anyone reading this post: I HIGHLY recommend googling “FOFOA” and reading his stuff. This site offers a unique and very insightful perspective into gold that I have not read anywhere else.
Thanks for sharing this.
I’m not sure I’d call it ‘investing in gold’ anymore than you’d say ‘investing in cash’.
I guess that’s true.
My grandmother always said to invest on gold: its value only increases in time so you can’t go wrong with this kind of investment.
Sure you have to make sure to also place your money in medium and high risks funds, but for safekeeping gold is king.
I write to share my two cent worth opinion that we should include gold as one of our financial hedging tools against inflation.
with increasing pressure on high inflation throughout the world, there is much opportunity of reaping profit is much higher than loss in the mid and long term.
Thanks and wishing you all the best,
I have invested in gold myself and would not hesitate to help others to do the same especially now that gold prices is still rising.
Great article. Thanks for sharing.
I already got a gold account and I am so happy.. It’s the safest investment so far.