Why Buy Gold?
Why Buy Gold? This is a very common question and the answer isn’t always easy to understand. There are a lot of factors that make gold a smart investment, and it is important to understand what they are so you can feel safe with gold in your portfolio. Below are three compelling arguments for buying gold for those investors and individuals asking themselves “why buy gold?”
Safe Haven and Store of Value
Gold has been used as a safe haven and store of value since the beginning of civilized man. In the event of economic or geopolitical catastrophe, those individuals holding gold can feel secure knowing that this asset is immune from government manipulation and devaluation. Many people are unaware of the fact that their portfolios are allocated exclusively into assets tied directly to the value of the US dollar, and subsequent gains in stock, bond, and real estate positions are offset by losses in the dollar that they might otherwise be unaware of. Gold has a negative correlation to the value of the US Dollar and can provide a hedge against the devaluation of the US dollar. Dollar devaluation occurs when governments print money to spur economic growth or enact policies that compel investors to want to put their money elsewhere. The United States currently has a budget deficit of roughly 14 Trillion dollars, and this is one reason why you have seen the value of the US dollar decline over the last few years.
Gold has provided investor 15% annualized returns or better, every year for the last decade. The picture remains bright for future returns as well for the follow reasons. Central banks and governments around the world continue to load up on gold following the financial crisis of 2008 because they know that it is the only form of currency that can be trusted in times of economic uncertainty. If you combine this force with the new demand coming from middle class citizens in countries like China, India, and Brazil, you should see a strong fundamental base for continued upward movement in gold. Another thing to consider is the fact that there is a worldwide loss of faith in paper currencies; especially the US dollar considering our national debt is more than our GDP on an annual basis. In the event of a failed bond auction or hyperinflation, you could see gold prices double in a very short period of time as the US dollar falls precipitously.
Under allocated in Portfolios
You might find this surprising but gold is very much under allocated in investor’s portfolios. As of 2011, worldwide, only 2% of investors have gold in their investment portfolios. This is sure to change as a result of the recent financial turmoil that has taken place. Even if gold were to be allocated into only 5% of investment portfolios worldwide, this would result a major surge in the current spot price.
We hope this page helps you understand the importance of owning gold the next time you ask yourself “Why buy gold”?
Precious Metals are an ideal asset to own given the uncertain economic and geopolitical conditions we currently face. Whether or not you are adding gold bullion to an investment portfolio, or preparing for retirement by setting up a gold IRA, precious metals such as Gold, Silver Platinum and Palladium have proven to be a secured investment. If you are asking yourself “Where can I buy gold?” Our gold inventory consists of American Buffalo Gold Coins, American Eagle Gold Coins, Austrian Philharmonic Gold Coins, Mexican 50 Peso Gold Coins, Canadian Maple Leaf Gold Coins, South African Krugerrand Gold Coins, Chinese Panda Gold Coins, Pamp Suisse Gold Bars, Credit Suisse Gold Bars, World Gold Coins, Indian Head Gold Coins, Liberty Head Gold Coins, Saint Gaudens Gold Coins, and Gold Proof Coins. We also have a diverse selection of Silver Bullion, Platinum Bullion, and Palladium Bullion.
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