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Gold a Recession Proof Commodity

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By lindagoffigan


How to Invest in Gold

During the recession, every force of the economy was effected except, you guessed it, gold prices.. Gold prices displayed its full force and worth by rising in value according to Forbes publication. Stocks and commodities plunged while gold rates steadily climbed in value. The gold rate leaped up to 23% while the economy experienced it lapse in performance on Wall Street. Gold prices stood out as a safe haven.

Why should you invest in gold? Forbes publication reports the gold rate has a double standard. Gold can be invested and used as a means of exchange or as a commodity. Gold is valuable in today's gold market. Gold Price a Recession Proof Investment is not suggesting that you go through your house, look for old pieces of gold jewelry and mail it off somewhere; have it melted down and returned to you for a lot less than is you had kept it. Gold is much more sophiscated than that and people who fall for this way of investing is probably getting ripped off. Some of these gold rate exchange operations may be scams because you are not told to have the jewelry appraised before you mail your gold off to these companies.

Gold Price a Recession Proof Investment  is suggesting that you keep your gold and be satisfied in owning a commodity of value. Hold onto your gold for its increasing gold rate of investment is not effected by the economic recession.  Since 2000, the gold rate  has steadily increased in value reaching over $1,000 an ounce.That is why gold is weighed instead of measured for value other ways because contrary to popular belief, the adage worth its weight in gold is a relevant statement.

The purchase of gold can protect you as an investor in inflationary times in the economy because of its ever increasing value based on its weight and the current gold rate market. The economy is in a recessive state now and once recovered may become inflationary. With all of the government bailouts and economic stimulus spending, the country's economy may be headed in that direction.


How to Invest Gold in Today's Market

At $1,000 an ounce and rising, your gold possessions provide viable hedges against inflationary times that may soon be upon the country. As the cost of goods and services rises so will the value of gold.  Gold protects in inflationary times.

The value of currency can be diminished as more money is printed in an act to offset recession.  Gold is not effected by debasing and its value steadily increases regardless of the amount of money the government prints.  Forbes publication reports that the price of gold does not ebb as the currency of exchange because the gold market takes in account that more gold is mineable and more gold deposits can be found in the earth.  The U.S. consumer price index has exceeded expectations because of the uncompromising value of gold and its value rate increase.

Gold is not only a spectator's metal, beautiful to look at and to own, gold has many industrious uses.  Gold is used as a metal that is highly conducive to electricity and has properties that can resist corrosion.  Gold is functional in audio equipment and USB computer cables.  Gold is renown worldwide for its use in jewelry adornments and dominates the gold market according to Forbes publication.  Based on facts from the World Gold Council, the slowing of gold mining actually  adds to the its rising value.

How to Invest in Gold?  You can either purchase physical bullion or buy the future of gold through a broker.  You may purchase physical gold coins and bars getting to hold  the actual asset. However owning gold is not always easy.  You will have to have somewhere to store and to insure your gold.  If you decide to invest in gold with a broker, the contract can be very expensive.  Gold futures can be a hedge fund that makes investment not to tolerable for individual investors.  Gold shares stock market, GLD, is the most cost effective way to access the gold market.

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Kidgas profile image

Kidgas  says:
7 months ago

Linda,

I, too, am interested in gold investing. How are you currently invested in gold?

lindagoffigan profile image

lindagoffigan  says:
7 months ago

kidgas,thank you for your comment. I have not investing in gold yet and is presently prospecting.

Kidgas profile image

Kidgas  says:
6 months ago

I am currently exposed to gold through Goldcorp (GG) and Yamana Gold (AUY).  I also own physical silver and gold 1 oz coins.  Gold has been by far one of my better investments.

lindagoffigan profile image

lindagoffigan  says:
6 months ago

kidgas, thank you for your comment. Forbes publication stated that you are in a good place investment wise because Gold is uneffected by the recession.

Kidgas profile image

Kidgas  says:
6 months ago

I can clearly attest to that. I have owned ABX, KGC, GFI, PAAS (silver) in the past. Have been with GG for the past 2 years and am pleased. It has certainly held up.

lindagoffigan profile image

lindagoffigan  says:
6 months ago

kidgas, thank you for you comment. Since you mentioned that you collected gold coins, I am going to research coin collecting. Do you have any advice on how to proceed with the venture?

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