Should You Be Investing in Gold?

If you're ready to start investing in gold, now is the right time. And if you haven't made up your mind about gold investments, read through this section to see if gold is right for you.

If you need some encouragement, some of the experts in the asset preservation business are saying that gold will go to $1,500, $2,000, or more per troy ounce in the next few years.

Of course, $1,500 isn't too far from its current $1,200+ level, but that's still a 20%-25% appreciation if you buy now.

You have to choose between trusting to the natural stability of gold and the natural stability of the honesty and intelligence of the members of the Government. And, with due respect for these gentlemen, I advise you, as long as the Capitalist system lasts, to vote for gold.

George Bernard Shaw

Where Gold Is Headed, and Why

The consensus about gold is that it's going up. Of course, there are contrarians who say that we're watching a gold bubble develop, with nothing to sustain it but panic and fear.

However, with currency volatility, the US creating money whenever it wants, and hyperinflation looming, price increases are almost a sure thing.

The rise won't always be in a straight line, and it may drop before it begins its run (one prediction we read said gold will go to $600 during the summer of 2010 then up to $1,600 by the end of 2010). Others are predicting gold up to $2,000 in the next couple of years, with another saying $3,000.

The questions are how high gold will go, when the climb will really start, how quickly prices will appreciate, and will they stay there or plummet like a gold bar falling from a building.

In the spring of 2010, gold reached an all-time high. It retreated a bit when the euro destabilized due to the Greece debt crisis and investors ran to the US dollar.

Historically, gold retreated more than it did this time, leading a few pundits to believe that some institutional investors no longer believe in the USD and are putting their funds into gold.

Many experts watching the US economy, Federal Reserve behavior (printing money whenever it wants), and US government spending, think gold will start its climb in 2010.

Gold protects the people of a society from the continuous destruction of their currencies by governments.

Jeff Nielson

If you want to preserve your net worth, consider investing in gold now while prices are still fairly low.

Take Advantage of Today's Gold Prices

There are several ways to invest in gold and take advantage of its relatively low price.

If you have the funds, some of these options can save you money. Others are more convenient, but will cost a bit more per unit purchased (from grams to fractions of an ounce).

Your gold investment options include...

• Buying Gold Coins
• Buying Gold Rounds
• Buying Gold Bars

Read about each of the ways to invest in gold. That will ensure that you're familiar with all of them. One may be your preferred way of investing in gold while another may be your fallback investment method. Or you might consider trying them all.

What's the most important advice we can offer you? Do your homework! Consider the various options that suit your budget for asset accumulation. Then compare the gold vendors. Some charge less than others, while you might find others that offer bulk purchase discounts.

Continue to educate your self about investing in gold so that your investment dollars will go farther. Your education will put more gold in your pocket, or in your gold vault!

References

Don't take our word about the direction gold is taking. Read what some of the experts are saying.

• Gold's Bull Run Isn't Over Yet, Bengt Saelensminde, MoneyWeek, which discusses the current gold bubble and why it's not going to pop any time soon.
• Why More Investors Like Gold, Frank Holmes, The Gold Report, which discusses how North Americans and others are waking up to to the risk of currency debasement, and looking to gold.