Investing in Gold – Should You Invest in Gold?
Investing in gold has a long history that dates way back to the very first notion that gold had value. Ancient civilizations often measured value in gold, and not much has changed as time has gone by. Inventing in gold today is a safety measure that many investors use to protect themselves in case of a complete economic collapse. The notion is that currency can be made completely useless by a collapsed economy, but the value of gold will always be recognized. Gold is the most popular precious metal for buying, storing and trading. There are a lot of good reasons why you should consider investing in gold.
One of the reasons why current day investors are starting to shy away from the notion of investing in gold is the feeling that the market for gold may eventually start to decline. In 1970, the value of an ounce of gold was $37 American dollars. By the time the calendar reached 2010, gold had reached a value of $1,410 American dollars. You do not need to be a math expert to understand the value of investing in gold in 1970. The value of gold has risen in concert with things like the value of the Dow Jones Industrial Average and the value of the American debt. Gold has managed to keep pace with the rising cost of living all over the world.
Back in 1970, the idea of investing in gold was considered risky because the average investor just could not see the value of the precious metal going much higher than $37 an ounce. But if you look at in round numbers, you can appreciate the value of investing in gold. If you would have purchased one pound of gold in 1970, you would have paid $592 for that pound. If you would have held on to that gold for 40 years and sold it in 2010, you would have received $22,560 for your pound of gold. That would be a profit of $21,970.
One of the reasons that people use to avoid investing in gold is that it is simply too expensive. Over the last 40 years, gold has given no indication that its value is headed for a decline. But if gold keep following the economic indicators, and the world’s economy collapses, then the value of gold could crash with it. Investing in gold has always been a way for people to protect themselves in case currency became useless. There is nothing to indicate that those kinds of investment moves should change any time soon.