FOUR REASONS TO INVEST IN GOLD
There are various reasons to consider acquiring gold. In today's challenging economic environment many people are concerned about the economy, unemployment, and future inflation. There are hard-working, everyday people, who want to diversify their portfolios and plan for the future, but they don't know what to do or where to turn. If you're one of those people considering investing in gold, here are four reasons why gold may be right for you.
Portfolio Diversification
It's no secret that having a diversified portfolio makes a lot of sense. Having a mix of assets may help spread out your risk. Put simply, it's not prudent to have all your eggs in one basket. And that's why adding assets such as gold to your portfolio is a common sense diversification strategy. Gold also offers the opportunity to diversify with a hard asset that has intrinsic value.
Inflation Hedge
Many people choose to own gold because they view it as a potential hedge against the potential weakening buying power of the dollar. In the 1920's, $20 -- either in the form of a gold coin or a printed bill -- bought a fine men's suit. Since then, trillions of paper dollars have been printed by the government and added to our nation's money supply. That's why a $20 gold coin still buys you a fine tailored men's suit, but a $20 bill won't even pay for the alterations. As the world faces scenarios we haven't seen since the Great Depression -- like unprecedented government spending, high unemployment and the potential for future inflation -- some analysts are saying that gold offers protection against the possibility of a declining dollar.
Rising Gold Prices
Over the past decade, gold prices are up over 300%. While past performance cannot guarantee future results, there are some financial experts who believe gold prices may reach new record highs. Many precious metals market analysts believe that today's uncertain economic climate could contribute to a further rise in gold prices.
Pride of Ownership
Unlike paper investments, gold is a physical, tangible asset. It has a recognized intrinsic value. You can take it out of the box, know the history of the coins, and hold the value of the asset right in your hand. Many gold coin collectors and owners enjoy this aspect of owning gold. It's something you can own, rather than merely a piece of paper. There are also coins with unique and interesting histories, which can add collectible value to the coins.
We're facing problems the world hasn't seen since the Great Depression -- unprecedented government spending, sovereign debt issues, potential inflation -- so people are naturally concerned. But as you can see, there are several reasons why gold may help you address some of those concerns and be right for you.





