During these tough economic times, many investors are starting to panic. They’ve lost trust in the stock market but have no idea where to put their money. The problem is that many investors think their only investment option is the stock market. They may view alternative investment opportunities, take real estate for an example, as too risky. The bottom line is that they want their investments to be safe and smart, yielding positive results both now and in the future. After all, many of these investors are putting their life savings on the line.
In the face of such unsure times, there is a sound solution: invest your money in gold and other precious metals. No matter what part of the world you call home, gold is a safe investment. According to NBI (National Bullion Investors, LLC), “Gold prices will rise next year as the financial crisis pushes more investors into the precious metal safe haven.” In fact, the gold industry expects bullion prices to hit $958.6 per troy ounce by November of 2009. Considering that current prices hover around $902 per ounce, we’re looking at a hefty increase if trends remain the same over the next year.
For the past ten years, Alan Greenspan, the widely respected former chairman of the US Federal Reserve, has touted the wisdom of investing in gold. He predicted that fiat money would someday be worthless but commented that, “Gold is always accepted.” More and more investors, from the middle class to the very wealthy, are beginning to share his sentiments.
Jeremy Charles, the head of precious metals at HSBC in London, noted that many investors were turning to gold as their confidence in the U.S. dollar is shaken. Don’t expect this to be a temporary fix, though; Mr. Charles believes that we’re facing a structural change in the way people approach their investments. He states that even after the current credit crisis comes to an end, gold will be viewed differently. “High bullion prices are here to stay,” he declared. Meaning that gold will continue to be a wise investment option for many years to come.
According to FT.com, which recently covered an annual London Bullion Market Association meeting in Tokyo, some bankers are so worried about the security and stability of the financial system that they are putting their money into physical gold, which involves taking possession of bullion bars and coins and thus removing their investment from the financial system. Because of this high demand for gold coins, dealers worldwide are actually running out of stock of popular coins.
Now, more than ever, is the time to sit down with your portfolio and reconsider your investment needs. Open your mind to new opportunities and think about diversifying your investments. If you’re a bit uncomfortable with putting all of your money in gold, that’s okay; you can start off slow, putting 10 or 15% into the precious metal. Remember, gold is much more than the material that you wear around your ring finger; it’s actual money that can pad your savings account and help build your wealth.