Gold-Proven Method of Preserving Value

Why Invest in Gold?

Historically, gold has been a proven method of preserving value when a national currency was losing value. If your investments are valued in a depreciating currency, allocating a portion to gold assets is similar to a financial insurance policy. In the past year, the climb in the price of gold above $1900 per ounce is due to many factors, one being that the dollar is losing value.

Reasons to say YES to Gold

1. The dollar is weak and getting weaker due to national economic policies which don't appear to have an end.
2. Gold price appreciation makes up for lost interest, especially in a bull market.
3. The last ten years are a major bull move similar to the 70's when gold moved from $38 to over $800.
4. Central banks in several countries have been increasing their gold holdings as part of their foreign reserves, instead of selling.
5. All gold funds are in a long term uptrend with bullion, sliding in 2011 as gold increased, but ready for an new gold bull market surge in 2012.
6. The trend of commodity prices to increase is relative to gold price increases.
7. Worldwide gold production is not matching consumption. The price will go up further with demand.
8. Most gold consumption is done in India and China and their demand is increasing with their increase in national wealth.
9. All gold funds reached all-time highs in 2010 and will soon resume the advance.
10. The short position held by hedged gold funds has being methodically reduced.
11. U.S. government economic policies over the past decade have systematically projected the U.S. economy down a road with uncontrollable federal spending and an uncontrollably increasing trade deficits. Both will cause the dollar to lose in international value and will increase the price of alternative investments, such as gold.
12. With the recent devaluation of many international currencies, the U.S. dollar was the international safe haven of last resort. We are seeing signs of this ending due to many financial factors, the most important one being a falling dollar.
13. There are over two Trillion dollars ($2,000,000,000,000) of U.S. debt owned by foreigners which could be repatriated under certain conditions. This could cause a major decline in the value of the dollar and a soaring gold price.

If you believe in 'buy low, sell high', gold is still low, but climbing.