Gold investment. Investing in Gold.
Gold investments have historically been one of the worst places a person could put his or her money. Because precious metals do not pay any type of dividends, an increase in their market price is the only way for them to earn you additional money. The price of gold has remained under $400 per ounce for the past two decades. If someone bought $10,000 worth of gold in 1980, even though the price of gold has not dropped, inflation would have eaten up over half of that person's original investment.
Liquidity is another big problem with gold investments. You cannot use it to make a house payment or to pay your babysitter. Plenty of firms are in the business of selling gold bars and coins, but not many of them are interested in buying back gold. The few dealers that do purchase gold normally do so at a large discount to the selling price.
Gold has regained its glitter in recent years. While the United Kingdom stock market has fallen around 25% this year, the price of gold bullion has surged nearly 20%. That has spurred gold investments to snap up the precious metal as a safer investment and increased the popularity of bullion coins as gifts for everything from christenings to Christmas. The gold rally has triggered the turbulent global economy: when investors fret about shares and bonds, they switch money to the safest of havens - gold investments. It gives investors a timeless and tangible asset that can be traded easily anywhere in the world.
That is not to say gold investment is necessarily a good long-term investment. It has performed dreadfully over the past two decades sliding from a peak of more than $700 an ounce in 1980 to a low of $260 in 1999. If the global economy worsens, gold investments will be one of the few to rise: share and gold prices tend to move in the opposite direction.
Copyright 2008, All Rights Reserved. Thanks for visiting a Performance Marketing Group Network Website. Advertise Here. Get A Free Link. Please visit one of our other quality websites.: