Monday, September 21, 2009

The Gold Standard Is...Gold

gold.jpgThroughout the last year or two, I noticed more and more signs going up all over town, informing people that a particular business is in the market to purchase gold coins and jewelry. It is nothing new to trade in old gold, but for some people, gold is seen as a steadier investment at the moment. Gold is slightly up. You wonder how jewelers want to buy it if they aren't making much of a profit. In fact, they are. They are paying a little more for gold, but are getting a little more for it too, so any loss is negligible compared to the increased press they are getting. Volume wins out.

Similarly, there are many gold funds that are attracting new investors. Some are encouraging you to purchase gold bullion. Where would you keep it? It would be awfully uncomfortable to hide it under your mattress like in the old days. Truth be told, you don't really physically own the bullion. Just like getting a paper print out on the stocks you own, you own it on paper.

If you decide to
purchase gold as a more stable investment, I would hesitate, just like any other decision, before pouring one's life savings into it right off the bat. I would do the research, or start with some rainy day money.


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