Gold as a Secure Investment

With the uncertainty of the stock market in the recent years and the ups and downs in the trading market, a smart investment for anyone is always gold! Even in the event of market declines, an increasing national debt, inflation, war and social upheaval; gold almost always retains its market value. Since April of 2001, the price of gold has more than tripled the value of the U.S. Dollar.

gold-investment

Gold is measured in “troy ounces.” A troy ounce, originated from the Roman monetary system, is a unit of measure used to gauge the weight and price of precious metals. One troy ounce is equal to 31.1034768 grams. Late in 2009, the price of gold spiked to $1226 per troy ounce. Financial commentator, Jim Rogers, predicts gold will reach US$2000 per troy ounce.

Gold might not bring you a huge return on your investment dollar as would stocks and bonds. However, stocks and bonds perform best during a stable political environment. In 2005, Rick Munarriz of Motley Fool.com posed the question, “Which is a better investment, a share of Google or an ounce of gold?” On January 4th of 2008, that gold had beaten the share price of Google by 30.77%, gold closing at $859.19 per ounce and Google shares closing at $657 on the U.S. Market Exchange.

gold-bullion

People generally invest in gold because they believe the price of gold will continue to rise or as a stable investment in the face of political or economic unrest. The price of gold is controlled by supply and demand, much different than many other commodities. Most of the gold ever mined is still in existance and potentially able to come back into the market. The price is further determined by “disposal or hoarding” of gold. It is estimated as of the end of 2006, the total amount of gold ever mined equaled 158,000 tonnes. The World Gold Council has report production in the last few years to be approximately 2,500 tonnes.

Your main consideration for your investment dollar is, do you want a stock with a fast return or one that will hold it’s value during economic uncertainty? The best choice may be splitting your investment dollar between gold and stocks. There are several methods of investing in gold for those interested in obtaining a secure investment for their money. Gold can be bought directly through bullion or coin ownership, purchased through gold exchange funds, or purchased as certificates or shares. The current gold price as of this writing is 1095.90 currently down. 0.50. Many people look for a low point to enter the gold market with an expectancy for the price to rise.

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