Investing In Gold - The Facts
Investing in gold is becoming a growing activity amongst investors as it allows for the increased diversification of their portfolio's and investment bonds.
The reason why people are investing in it is not just because gold has been around for millenia or that it 'sparkles', but because it is one of the very few investment items that hold a high value, regardless of what the market or economy is doing. Of course like all stocks and shares, the price of gold goes up as well as down, but what has been shown historically is that its price does not drop like other investments, but its price does rise a lot higher too.
Here is how gold has faired against stocks over the past number of years.
In January 2000 thestock market started the new millenium at 11,700. Thirteen years later at the start of 2014 the market closed at 17,823. This means that if you invested in stocks at the start of the new century, you would by 2014 had gained a return of 52%.
I am sure you would agree that gaining a return on any investment is good news, but to get a return of 52%, is great. I for one would have certainly taken that if you had offered it to me.
However let us not be too hasty. How did gold perform over the same period?
Well at the start of the new millenium gold opened at $283 an ounce and on the 1st of January 2014 it opened at £1,206 an ounce. What level of return does that provide? A whopping 326%. Now that puts the 52% ROI from stocks in the shade.
Here is what some of the leading investors in the US say about investing in gold.
"in 5000 years of human history, gold has been the currency of choice. The store of value, when humans have called into question their governments, efforts to solve problems by running printing presses and injecting money into the economy" Michael Avery - $3.3 Billion invested in gold
"People view gold as emotional, but when they demythologise it, when they look at it for what it is and the opportunity it represents, theya re going to say, W we really should own some of that', the question will then change to 'where do we get that the gold'?". Thomas Kaplan - over $2 billion invested in gold.
There are numerous more quotes we could put up concerning gold and reasons why you should look to invest in it. So if what we have put up here has interested you, then why not check out our gold investment companies review page.
