Investing in GOLD
No matter where you looked during the second half of 2007, investing was a wild ride. Mortgage woes, a credit crisis, oil near $100 a barrel, a volatile stock market, a slumping dollar—it's enough to send investors running for the hills. And, as in troubled times past, those hills have been filled with gold.
Today, like all investments and commodities, the price of gold is ultimately driven by supply and demand, including hoarding and dis-hoarding. Unlike most other commodities, the hoarding and dis-hoarding plays a much bigger role in affecting the price, because almost all the gold ever mined still exists and is potentially able to come on to the market for the right price. Gold is both tangible and liquid.
There are various ways of acquiring gold to add to one's investment portfolio, but at the Superior Gold Group we focus and specialize in the purchasing and selling of numismatic coins (of or relating to coins or currency), pre 1933 gold coins and or gold bullion.
What is going to drive up the price of GOLD?
- The dropping dollar. There is a reason that gold is traded at currency desks.. When the dollar, the world's reserve currency, starts to lose value, all sorts of investments not tied to the greenbacks start to look more attractive. Gold is one of them, and the dollar has no immediate plan for a return to stability any time soon.
- Fear. We predict that the U.S. housing debacle will continue to drag the country—and possibly the world—into a real recession, gold looks mighty attractive at $900. Geopolitical threats, like the possibility of the war in Iraq ballooning into wider conflicts in Turkey or Iran or political upheaval in nuclear-armed Pakistan, bring out new gold bugs, too.
- Global Demand - India, China and South America are all experiencing massive gains in prosperity and all are developing middle classes. Know that jewelry demand and a hunger for traditional investments are all playing a role in gold's rise. It's no longer westernized powers that power gold's demand, but now gold is truly global.
- The Fed. With the Federal Reserve and other central banks cutting interest rates, gold's rise might seem a bit odd. But the Fed's reasons for cutting rates—namely, slowing U.S. growth and uncertainty surrounding housing, the financial industry, and consumer spending—have sparked extra interest among investors looking for a bit of shiny insurance against either surprise inflation that the Fed won't be able to fight or a severe downturn in the economy (or, most worrying, both at the same time).
- Soaring oil. When oil prices move up, gold often follows suit as investors consider how high energy costs will boost inflation.
GOLD’s additional uses
- Electronics – such as smart phones and computer chips. Gold is the highly efficient energy conductor that can carry tiny currents and remain free of corrosion.
- Medical - Particles of a radioactive gold isotope are implanted in tissues to serve as a radiation source in the treatment of certain cancers.
- Future Uses - Gold is too expensive to use by chance. Instead it is used deliberately and only when less expensive substitutes can be identified. As a result, once a use is found for gold it is rarely abandoned for another metal. This means that the number of uses for gold have been increasing over time.
GOLD’s future
Gold is in the mist of a growth run in which many respected financial analyst are predicting gold will continue to rise in value over the course of the next 10 years. We are not just writing about gold companies either, but many stock brokers, real estate brokers, hedge fund managers and even state retirement fund officers have all made substantial stakes on the precious golden metal.
In 2006 and 2007, the combined return on gold was an amazing 58.7%, even better that that most numismatic coins returned far more.
Does that mean it's too late to join the gold rush? Hardly. And these days it's easier than ever to invest in gold. The Superior Gold Group even offers an Accession Slate Program that allows you to begin your first investment for $500.00
GOLD in the Model Portfolio
In a typical precious metals portfolio, The Superior Gold Group recommends, 40% in Gold --- of the 40%, 10% should be allocated to bullion and the difference in NUMISMATIC or pre-33 gold coins. Portfolios made of less than $100,000 USD should consider a different exposure level to Gold, Call the Superior Gold Group to discuss how you can purchase Gold today:
888-969-6465
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