subject: Invest In Gold - Sound Investing In Precious Metal [print this page] Precious metals are some of the soundest investments available. Every portfolio should include precious metals. To invest in gold is a great idea because it doesn't lose value when the market goes down. In fact, gold is a commodity that often goes up when the market goes down. Inflation is murder to stocks and other similar investments. Precious metals, especially gold, are one of the commodities that goes up at a pace that matches inflation. Gold always has value whether in good economic times or bad. It is a healthy investment because it will never completely lose its value no matter how bad things get.
Inflation devalues currency. Paper money is worth less but commodities cost more. It is a recipe for disaster. Employment continues to pay out the same amount of money, but money is worth less. It is more difficult to buy the things that are needed because retailers must ask a higher ticket price to get the same amount of money they got before inflation decreased the dollar. The downward spiral continues until a correction occurs that gets things back into a more balanced state. Gold does the opposite during inflation. Gold is not a currency, it is a commodity. It is one of the things that must go up in price to remain at the same value as it did before inflation. That is why it is a great idea to invest in gold.
Gold is the standard of wealth when all other currency becomes devalued. It is worth more during inflation than at any other time. This renders those who invest in gold rich when everyone else is becoming poor. Investing in gold is best done when the economy is stable and gold costs less per ounce. As the economy slows, gold prices usually begin to climb. Precious metal prices fluctuate from day to day and these fluctuations can be quite dramatic.
Gold coins are the most popular investment opportunity. Coins minted by the US government are worth more than their weight because minting adds a bit of a premium to the total value. Gold coins minted before 1933 have added value even beyond that because of their rarity. The demand for rare gold coins drives their prices up. Some rare gold coins can be worth twice their weight. To invest in gold coins is a sound practice that always pays off.
by: Michael MacDonald
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