The August 2011 downgrade of the American debt ratings by Standard & Poor’s has caused gold to skyrocket upwards of $1,800.00 an ounce! Now is a better time than ever to learn where to buy gold, how gold compares to other investments and what to consider before purchasing gold.
One of the biggest reasons that people invest into gold is to “hedge” or protect their finances from high levels of inflation. The “financial meltdown” of 2008 proves that the purchasing power of the United States dollar is steadily decreasing. Gold has been known to hold its value during times of turmoil in the markets, so instead of questioning whether to buy gold, many people would just like to know where to buy gold!
While many people invest in the stock market which fluctuates constantly, the value of gold either stays steady or increases. A fact that is unknown to many people is that the United States dollar is not accepted in many countries, while gold is accepted nearly everywhere. Gold is known to many as the “universal currency.”
Consider an investment of $10,000.00 as an example. If a person invested that amount of money into gold bullions in the year 1999, that $10,000.00 investment would have become $48,300.00 by the year 2009. In other words, investing in gold during the year 1999 would have netted an unbelievable return of 238% in 2009!
Next, consider an investment of $10,000.00 into the stock market. The investment of $10,000.00 used towards purchasing of stocks within the Standard & Poor’s index, would have netted a loss of $1,400.00. In other words, investing into the stock market during the year 1999 would have netted a 14% loss in 2009.
Gold has proven to be a more stable and profitable investment than the stock market. In addition, gold reins superior over assets that are based on performance such as bonds, savings and money market funds. When inquiring where to buy gold consult with a trusted gold dealer, who can answer any questions that you may have.