When Considering Gold Investments – Will Gold Continue To Rise?

Bullion price is rising, but will it continue to do so? The question is now in the minds of every potential investor. In other words, they are more eager to know if it is the right time for investment in gold.

A major slice of the crowd is more attracted towards traditional investment like stocks and bonds. Even if you belong to this bracket, you can’t disagree that gold investment is much safer due to its intrinsic value. If you look at its historic price movement, you will be convinced that gold investment will bring good return. History is a witness that even during market crush; gold market stays immune to such economic downfall.

Gold is now perceived as a potential investment tool with high return. It has good ‘liquid’ value anywhere in the globe. However, some are still skeptical whether gold price will show an upward movement in coming days. In 2008, we experienced economic decline that began in the USA but contaminated the entire world. Problem persisted for long and though crisis is over, we are still struggling with its shadow. In some countries, gold is more in demand. This high demand factor is expected to give a strong push to gold price.

So to invest or not to invest? Before deciding on this vital point, arm yourself with more knowledge. Implosion of currency – that is what we are witnessing in present economy. It springs no surprise that people have lost faith in the government that can’t shake off its responsibility for economic collapse back in 2008. In absence of any common currency used worldwide, you need a common thing that can be traded in to get what others have.

A good point about gold investment is that gold like other investment options such as stocks, bank savings and similar things is not anybody’s liability. Whatever happens to an economy and no matter how serious the problem is, gold can always be a solid foundation of your investment portfolio. And just imagine how safe you will feel during economic crisis.

Right timing is a crucial factor whenever you are planning an investment. But at the same time, you must also assess if gold investment will ensure your financial security. If the answer is positive, adopt a ‘do it now approach’ instead of waiting for good timing. By investing in gold, you can diversify your investment portfolio that won’t be adversely affected in the event of economic turmoil like what happened in 2008 and is currently gripping many European countries.

You might be surprised to know that people from all sections of the society own gold. Gold is a reliable investment asset, they think so. A recent survey has disclosed that people are preferring gold to other alternative means of investment. At the time when gold is becoming more precious, they seem to take the right approach towards creating more wealth through gold investment. The need of the hour is diversification of asset and gold investment gives you an opportunity to do that.

Gold Investment Advice

Investment in bullion! The idea is getting quite popular especially when the yellowish metal is picking up in price almost with every passing day. Most of the people are still novice in this regard and really confused as to when they should make investment in gold and how much. For the prospective gold investors, here is a question-answer session as guidance

Which type of gold should I invest in?

It is the most common question thrown towards the gold traders and financial advisors. The answer depends on the purpose of buying gold. Some buy gold to consolidate their financial standing and reap benefits out of its upward price movement. For them, I suggest buying of contemporary gold coins. However, those seeking capital controls through gold seizure, investment in pre-1933 gold coins sounds wise. Both the historic and contemporary bullion coins are traded at modest premium which is higher than their melt value. So, keeps a tab on gold price to experience rewarding liquidity anywhere in the world.

What is the right time of investment for me?

The straightforward answer is when you actually need to own it. Gold investment is not similar to real estate or stock investment, so approach must be different. Timing is a factor but it is more important to know if gold investment will hedge your financial security. If the answer is ‘yes’, don’t wait for a favorable timing, instead make a purchase immediately. For strategic planning, you may adopt cost averaging approach. The objective is to diversify your investment portfolio so that it does not get affected by economic crisis that the world witnessed in 2008 and what is going in Europe at present.

What is the demography of the gold investors?

Contrary to popular belief that only the top and middle tier businessmen own gold, we see a different picture wherein the profiles of gold investors represent different sections of a society’s economic clusters. Obviously very poor people are not enlisted but strangely, many common men around us investment money in gold. They are teachers, doctors, engineers and other creamy layers of the society along with plumbers, tailors, masons considered to be at the bottom of social structural pyramid. These people consider gold as an investment asset due to the potential returns they get. Gold fluctuates less in price and so make a safe investment choice for many, irrespective of age, gender, nationality and income slab. According to a recent survey, 34% of the US citizens have rated gold as a higher investment tool than other alternatives like bank savings, real estate, stock, bond etc.

Gold is insurance, as claimed often. Really is it so?

Unlike bonds, stocks, bank savings or other investment vehicles, gold is not other’s liability, a feature that enables someone else to pay for the capital asset. No matter what happens to the economy, even if the bond, stock or real estate price hits the historical low, gold can always be bedrock of your investment, thereby insuring your wealth amidst any kind of economic turbulence.