Prior to late 2007, the stock markets, both domestic and international, were at a high. Investors were confident in their investments, securities were trading for gains and portfolios were maturing rapidly. Then, in late 2007 and early 2008, everything changed. Investors lost millions seemingly overnight and the market slump perpetuated for several years. The need for an alternative to more traditional forms of investments became more necessary than ever, driving individuals to seek another way to protect their assets. In looking for other options, buying and selling commodities began to grow in popularity. Precious metals in particular have risen to the forefront of this intriguing market. As more and more investors are discovering, gold can be a great asset in one’s portfolio, and there are many good opportunities and reasons to buy gold.
Gold is a very valuable asset to many people. Gold has a long history of value for its pleasing color and appearance. It has long been associated with royalty and wealth and is used in applications from jewelry to decoration to electronic engineering. While buying gold often has negative reputation related to a mistrust of the market or the government, investing in gold is very common. Due to its desirability, gold always will hold value, something that cannot be said for most other opportunities. It does not generally depreciate in value, cannot be rendered worthless, does not take a large time commitment to invest, and does not require a complicated process or expert knowledge. Anyone can get started in buying and selling gold.
Whether you want to make gold your only investment or a part of your larger portfolio, there are some questions you may be asking yourself. When is the right time to buy? What exactly does having an investment in gold mean? Is gold the kind of investment that would benefit my future? In a portfolio, gold is considered an investment in natural resources, a category that also includes energy and oil. Many individuals looking to invest in gold consider gold-backed options, securities, or funds such as exchange traded funds, or ETFs. If this is the strategy you desire, when to buy gold can largely depend on what funds are performing well and whether you hope to increase your asset allocation in natural resources investments. With this strategy, it is easy to do research investment options to know when and where to buy.
If you are hoping to purchase physical gold rather than gold-backed investments, the answer is not so clear cut. Things like the current value of gold and the predicted trends, the condition of current investments and hopes for your financial future can all play a role. For example, gold can be a great long-term investment as it generally appreciates in value but it will not provide an aggressive strategy. However, it can also be very effective in reducing the risk in an equity portfolio without the need for fixed income investments. Additionally, for those who do not necessarily trust the market and its recent performance, gold is a strong investment with a record of longevity that few other options can offer. For those looking for a substitute to market investments, gold can be a great alternative. If gold prices are on the rise and you are not pleased with the market’s recent performance, it could be the right time to buy gold.
When asking yourself whether or not the time is right to get started with gold, the answer is often personal. Different investors have different needs for their portfolios, future expectations, and current cash flow needs. When gold prices are steady and an investor is considering alternative options to marketable securities, it might be time to start considering gold. Investing in gold can be an exciting opportunity for many investors. If you have the money and the interest in precious metals as a plan for the future, the time may be right for you to make an investment.
This has been a guest post from the Australian Bullion Company, your ultimate destination to buy gold online.