Whether you are worried about doomsday or the recession, there is an answer — gold. The yellow metal is one of the hottest commodities on the market and investors worldwide are starting to take notice.
There is a huge amount of uncertainty in the current financial economy. The plunging Euro, deflation, inflation and government debt are just a few concerns of the population. Everyone from Glenn Beck to ordinary Wall Street brokers are taking an interest in gold, driving prices to all-time highs. And gold hogs that were dismissed as gold hoarders are seeing their investments really pay off.
Investors everywhere are catching gold fever and following in the footsteps of gold enthusiasts like financier George Soros and buying gold bullion by the bar. The United States Mint has been running short on gold coins and the mint in South Africa increased their Krugerrand production by 50% last month, its highest level in the last 25 years.
The Greek debt crisis in Europe has guaranteed a drop in the Euro. This is the most notable catalyst for gold’s recent price increase. The American Eagle one-ounce gold coin tripled in sales for the month of May when compared to the previous month.
The concern amongst investors is that if governments continue to print more money to pay off their debts then inflation is going to destroy the value of paper currencies around the world – consequently enhancing the worth of gold.
How to Buy Gold Bullion
Gold has historically retained its value when compared to paper currencies. Governments fall and currencies collapse but gold remains and holds its worth. Of course, gold can still go down but unlike paper currency, gold will always preserve at least some value.
Glenn Beck offered three things to consider, “Gold, God and Guns.” He presented three potential scenarios for the economy: recession, depression or collapse. Beck has also stated, “I personally don’t buy gold as an investment. I buy it for protection.”
Gold tycoons note that gold has risen in price every year for the last nine years while the S&P has gone down 13% in those same nine years. Gold is worth nearly five times what it was then.