Despite Recent Pullbacks Gold Remains the Ultimate Store of Value
Despite the recent pull back in gold prices analysts are still more bullish on the prospects for Gold than they were three months ago.
The uncertainty still surrounding the current Euro Zone crisis and US presidential election is helping gold to reassert itself as a strong safe haven asset.
Although gold prices are struggling to break beyond the barrier of $1800, it is still evident that we are in a major gold bull market and the peak is yet to come.
Speculative investors should be wary of the misinformation that has been propagated about gold in the press.
A lot of so called experts giving interviews on gold investment fail to distinguish between gold bullion, ETFs and gold mining shares.
It is vital that investors firstly understand the differences between these types of investments and make the correct decision for them.
Gold is a monetary metal, a commodity but more importantly it is a store of value and an alternative to fiat currencies.
Gold has an intrinsic value and cannot be counterfeited or manufactured at will, which is why out of all the commodities it has withheld and functioned as money for thousands of years.
Gold's value does not arise from its usefulness in industry; it arises from its use and worldwide acceptance as a store of value.
There are many factors that influence the gold price, these include: inflation, fluctuations in the dollar and U.
S.
stocks, interest rate volatility, international tensions, other commodity prices, monetary policy, political stability and central bank intervention.
However, at the moment the most important influence on gold price is the debasement of major currencies, particularly the U.
S.
Dollar.
While investors still believe that Spain will be forced into a bailout, the Spanish Prime Minister and Finance Minster are both adamant that Spain does not need a bailout and that Spain's reform program is sufficient enough to stave off a full sovereign bailout.
If you have been paying attention to the Euro Zone crisis you will know by now that we have seen this lying tactic many times before across the global governments.
You can simply no longer trust a word a politician says.
The financial problems facing the US have been totally underestimated as the focus has been on the debt crisis in the Euro Zone.
The latest non-farm payroll report released in the US showed that 114,000 people were added to the job market in September and the unemployment rate dropped sharply from 8.
1% to 7.
8%, the lowest number in 44 months.
However, the number of people collecting food stamps has increased to a new all-time record.
Is it just a coincidence that the rate of unemployment has dropped just prior to the elections? Or is this just another example of lies from our political leaders? Each time we are told that things are improving, the facts indicate that they are actually deteriorating.
Unless big changes are made to policy nothing is going to stop the devastating effects of the financial storm ahead.
However, if you are holding gold bullion you are better placed to weather the storm! Ideally investors should aim to have 7-8 percent of their assets in gold.
This can be via ETF's and shares.
However, it is always best to start investing in gold by purchasing bars and coins in order to provide physical security.
Precious metals are becoming more mainstream, we are going back to normality and normality means that gold should be a core part of your portfolio.
The uncertainty still surrounding the current Euro Zone crisis and US presidential election is helping gold to reassert itself as a strong safe haven asset.
Although gold prices are struggling to break beyond the barrier of $1800, it is still evident that we are in a major gold bull market and the peak is yet to come.
Speculative investors should be wary of the misinformation that has been propagated about gold in the press.
A lot of so called experts giving interviews on gold investment fail to distinguish between gold bullion, ETFs and gold mining shares.
It is vital that investors firstly understand the differences between these types of investments and make the correct decision for them.
Gold is a monetary metal, a commodity but more importantly it is a store of value and an alternative to fiat currencies.
Gold has an intrinsic value and cannot be counterfeited or manufactured at will, which is why out of all the commodities it has withheld and functioned as money for thousands of years.
Gold's value does not arise from its usefulness in industry; it arises from its use and worldwide acceptance as a store of value.
There are many factors that influence the gold price, these include: inflation, fluctuations in the dollar and U.
S.
stocks, interest rate volatility, international tensions, other commodity prices, monetary policy, political stability and central bank intervention.
However, at the moment the most important influence on gold price is the debasement of major currencies, particularly the U.
S.
Dollar.
While investors still believe that Spain will be forced into a bailout, the Spanish Prime Minister and Finance Minster are both adamant that Spain does not need a bailout and that Spain's reform program is sufficient enough to stave off a full sovereign bailout.
If you have been paying attention to the Euro Zone crisis you will know by now that we have seen this lying tactic many times before across the global governments.
You can simply no longer trust a word a politician says.
The financial problems facing the US have been totally underestimated as the focus has been on the debt crisis in the Euro Zone.
The latest non-farm payroll report released in the US showed that 114,000 people were added to the job market in September and the unemployment rate dropped sharply from 8.
1% to 7.
8%, the lowest number in 44 months.
However, the number of people collecting food stamps has increased to a new all-time record.
Is it just a coincidence that the rate of unemployment has dropped just prior to the elections? Or is this just another example of lies from our political leaders? Each time we are told that things are improving, the facts indicate that they are actually deteriorating.
Unless big changes are made to policy nothing is going to stop the devastating effects of the financial storm ahead.
However, if you are holding gold bullion you are better placed to weather the storm! Ideally investors should aim to have 7-8 percent of their assets in gold.
This can be via ETF's and shares.
However, it is always best to start investing in gold by purchasing bars and coins in order to provide physical security.
Precious metals are becoming more mainstream, we are going back to normality and normality means that gold should be a core part of your portfolio.
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