Is Buying Gold Over Stocks A Better Financial Investment?
Is Buying Gold Over Stocks A Better Financial Investment?
— Receive access to exclusive information, benefits and discounts Will there be more global turmoil? Though I can’t say with certainty, I doubt it would have much of an impact on the price of gold. Let’s look back at what has happened in the world since gold peaked in 2011. I would argue it has been the perfect storm of exactly what goldbugs want, which is more geopolitical unrest and lax monetary policy. ISIS has emerged, making al-Qaida look almost small-time by comparison. The Middle East is in turmoil, North Korea is testing nuclear bombs, terrorism is rampant — both the physical and cyber varieties — and, around the world, deficits remain high as global debt surges. But instead of gold going from $1,917 to $3,500 and beyond, it has plunged by more than 40 percent.
Buying Gold Is It a Smart Investment
If you re going to invest in the precious metal do it for the long haul
Istock Could investing in gold be a savvy financial move in 2016? , while gold has gained a bit of luster, rising more than 5 percent as of Jan. 28. Some experts are now predicting that financial markets will plunge deeply for the third time since 2000 and that gold could provide a safe haven. With gold having dropped from just over $1,917 an ounce in August 2011 to just over $1,118 as of the end of January, is it time to consider buying some? Here’s my take. Conventional wisdom regards gold as a great diversifier, as well as a safe haven in times of geopolitical turmoil and when governments are printing money at especially fast rates — often viewed as certain to devalue paper currency relative to gold. Quite frankly, that’s why it was so hot years ago, when I fell for a prediction that would rise to $3,500 an ounce within two years. That prediction, by the way, was made in 1980, and pretty much for the same reasons that lofty gold predictions were being made in 2010 and 2011.More From Allan Roth
— Receive access to exclusive information, benefits and discounts Will there be more global turmoil? Though I can’t say with certainty, I doubt it would have much of an impact on the price of gold. Let’s look back at what has happened in the world since gold peaked in 2011. I would argue it has been the perfect storm of exactly what goldbugs want, which is more geopolitical unrest and lax monetary policy. ISIS has emerged, making al-Qaida look almost small-time by comparison. The Middle East is in turmoil, North Korea is testing nuclear bombs, terrorism is rampant — both the physical and cyber varieties — and, around the world, deficits remain high as global debt surges. But instead of gold going from $1,917 to $3,500 and beyond, it has plunged by more than 40 percent.