June 22, 2012 - The concept of investing in gold is a smart move for investors seeking a safe, nonvolatile asset. Recently, the International Monetary Fund publicly supported the decision to consider the yellow metal if you are looking for a stable asset in the current economic conditions. Gold assets have long been known to be a smart way to hedge against inflation or other macroeconomic shifts, but from time to time there is bickering over whether this remains the case in the media. The IMF reported to the press that there is growing concern over a shortage of "safe assets", it makes sense that gold investors would want to also stock up on the yellow metal right along with the nations being advised.
Gold Core reported that, "The IMF identified $74.4 trillion of potentially safe assets today, including gold, investment grade government and corporate debt, and covered bonds."
Precious metals have proven time and again to be a uniquely superior choice when compared with assets like stocks, bonds and even paper currencies because their value is more static. Investing in gold means holding an asset that not only has a stable level of demand, but is also relatively scarce. This is why so many nations have held gold assets for centuries and will most likely continue to do so. The value may rise or fall, but for gold investors who ride things out, the long term value increases over time in nearly all cases, say experts.
The IMF is not merely handing out advice, it actually has its own gold holdings too. On its own site, the organization reports that, "As of February 29, 2012, the IMF's holdings amounted to $160.1 billion at current market prices."
This is reason enough to consider gold seriously as an investment, but it shows only a slice of the full picture. In reality, there is quite a history behind the IMF and its relationship with gold. In 2008, the IMF sold some of its gold holdings, around 400 metric tons, but it has more than what the average investors might realize.
To quote directly from the organization's web presence, "The IMF remains one of the largest official holders of gold in the world."
This is important to note. When making a decision about where to invest, new investors may ask more experienced investors for their opinion based on products and services they wish to sell. When examining what the IMF does, one can see how a large body of the world's most powerful investors make their choices. This is enlightening, and certainly is impacting the way today's gold investors think.
Several experts across the media agree with the IMF's assessment that member nations should hold gold assets to hedge against macro-economic hijinks. This is one more way to build a safer future for investors and their families, and one more piece of the overall investment picture falling into place.