For quite some time now, people have been placing all their wealth into non tangible investments. They have overlooked gold bullion for supposedly more profitable ventures like real estate, forex trading, and stock options. These people are currently losing their shirts right now in this recession. If they could do it all over again, what do you think they would invest in? Gold. At the beginning of the Bush administration, gold bullion prices were around $400, at the end of the Bush regime Gold bullion now sells for upwards of $1000. On the other hand, the stock market has done nothing but plummet.
To truly recession proof your investment portfolio, you need to invest in gold bullion. But is now the time to make such an investment, gold prices have tripled in the past 10 years, is it truly a good investment? In short, yes. Here’s why:
During a recession institutions run for gold. It is a safe-haven investment as it never looses it’s value. The gold market never has crashed in thousands of years. The demand for gold will remain high for some time, and the price of gold will continue to rise as the world scene shows only more and more instability.
As global inflation is on the rise, more and more will be seeking out assets that are inflation proof. Gold bullion has historically proved itself to be a hedge against inflation. Oil and food will continue to inflate in price, or crash altogether, gold is secure and solid.
Unusual market conditions can wreak havoc on our investment portfolio of stocks, bonds, equities and so forth. People who are intelligent will naturally look into investing in gold as it does not behave badly in bad markets, it only continues to rise in value.
Currencies fluctuate rapidly, faster than some can keep up with. Right now the dollar is falling in value, some predict inevitably it will crash. Investor demand for gold bullion will continue to rise as the dollar denominated commodities such as gold bullion continue to fall, which makes it cheaper if you hold other currencies.
Gold is a highly liquid asset, it can be bought and sold anywhere in the world. It is universally recognized as a valuable asset. Right now, many countries will not exchange dollars, or buy US currency outright. In economies like this, having assets that are liquid is essential should an emergency occur.
If you take a truly objective look at the world economy, you will see nothing but continued problems and disputes. All of these things make for an increase in the value of gold. So if you truly want to invest for success, and want your investments to last far into the future, invest in gold.