Should You Invest in Gold?

GoldvaultFor the past several years, gold has been continuously on the rise. This precious metal has been definitely shining and sparkling. And with many countries plagued with an unstable economy, gold continues to be on a meteoric rise. This is because many individuals now see gold as the best hedge against unstable economies and economic fluctuations.

With this trend you have been seeing, the question that keeps coming to your mind is “should I invest in gold?” Well, should you? If you base your decision on gold’s current performance, it definitely is high time to invest in gold. For the past decade, gold’s price is steadily increasing, and before it balloons to the $2000 an ounce mark, you need to start investing in it.

Experts always advise to create a diverse investment portfolio, so that aside from the usual investment in bonds and stocks, gold investments are a good and hefty addition to your portfolio. It should be a rule of thumb that an investor must not hold more than 10% to 15% of gold investments. The rationale behind this is the fact that gold, like any other investment, is also prone to price fluctuations and the economy. For example, if the dollar performs better, there is a tendency for the price of gold to go down. As well, the law of supply and demand can affect gold’s price.

Having said this, it is wise to choose the best way to invest in gold. There are indeed many ways to invest in gold, and your decision to put your money in a specific type of investment should depend on your purpose of investing. If you’re buying gold, but you’re not comfortable with keeping gold bullion and coins in your own safe deposit, then go for ETFs. Exchange traded funds (ETFs) are contracts that are supported by gold. However, if you’re more comfortable with looking at real sparkling gold, you can buy gold bars and/or coins.

Remember that investment in gold has its high points and low points, so be sure to consult a professional to weigh your options before making your move.

One thought on “Should You Invest in Gold?
  1. Pingback: Investing in gold mining stocks - How to Invest in Gold

Leave a Reply