Invest in gold bullion

Gold bullion: invest in gold

It’s easy to understand why so many of us invest in gold. It’s beautiful, it’s useful in so many ways, it’s highly liquid, and it’s an excellent hedge against inflation. If that’s not enough, and you’ve been wondering why you should sink your investment funds into Element 79, here are ten more good reasons.

Reason #1: High Value

Call me Captain Obvious, but first I have to point out that gold is worth quite a lot these days, and the value just keeps going up. As of October 14, 2010, gold’s price was $1,381.20 per ounce. It rose to this point from about $40 per ounce in 1971, when Nixon decoupled the dollar from the gold standard.

According to the London Bullion Market Association, we can expect gold to rise to $1,450 within the year. Other observers expect the price to double by 2015.

Gold has risen a steady 17% percent in value, on average, for the last nine years. That beats the heck out of the market in general, and the trend doesn’t show any signs of slowing. In fact, if anything, it seems to be increasing. Gold is well on its way to its tenth year of double-digit growth.

Reason #2: Low volatility

Unlike silver and platinum, which tend to bounce all over the charts, gold historically displays low volatility. Sure, the price fluctuates, but those fluctuations are generally more minimal, and the trend has been for gold to consistently rise in value.

In other words, the price of gold may drop temporarily, but it eventually comes back higher than the peak it dropped from.

Compare this to silver, which traded at $5-7 for years after its 1979/80 peak of $54 per ounce, and platinum, which plunged from $2254 to $774 in 2008, and still hasn’t recovered.

Reason #3: Concentrated wealth

It’s said that good things come in small packages, and this is certainly true of gold. Ounce for ounce, gold is worth about 60 times more than the other commonly-traded precious metal, silver.

Thus, for those who prefer physical metal over ETFs and stocks, it’s easier to accumulate greater wealth in a limited space with gold bullion. That concentration also allows you to accumulate your wealth more discreetly, if you so desire.

Reason #4: Portability

Because gold is so financially dense (if you will), it’s easy to move it around when you need to. Please don’t think I’m telling you that you should carry a fortune in gold on your person; of course you shouldn’t. It should be carefully and quietly stored in several safe deposit boxes or safes that you have easy access to.

However, if you do need to transport your gold, it’s a simple matter to move a significant amount of value all at once. It doesn’t take many one-ounce bullion coins, for example, to hit the $10,000 mark. And if you ever need to sell it in a hurry, it’s easy to move (in both senses of the term).

Reason #5: Gold is a true asset

Unlike most assets—e.g., your house or car—gold is a pure asset with an intrinsic value, on which you have to pay no maintenance costs or taxes (at least for now – until you sell). Though you should spring for a safe deposit box, you don’t have to, and the government won’t force you to.

Five down, five to go

So far, I’ve covered five reasons why gold is an excellent option for the serious investor. In Part II of this article, I’ll outline five more reasons why you should invest in gold. And to find out more about HOW to invest in gold, be sure to sign up for my free newsletter and Mini-Course.

What do you think? How compelling is investing in gold for YOU? Let me know by commenting below.


Tags: ,