Gold Investment

           This is a difficult time for everybody. The US financial debacle in late 2008 had put everybody’s financial holding on a shaky footing. Some of my sister’s friend and co-worker lost 30%+ of their mutual fund value. Some lost their homes. Our home in Boynton Beach also lost its market value. Luckily, we had paid its mortgages off many years back. To me real estate investment is still viable even in this hard time. However, one needs to be more cautious.

           I put up this website in 2007, suggesting Baby Boomer to start a program to earn some additional income on their own, and not depending too much on the Government or their current employer. As you have seen, working for a firm for thirty years could be a big risk; many had their rug pulled from under them during such crisis, with few safety nets to catch them.

           So, let’s come to our topic, Gold Investment. Time and time again from thousands of years gold had remained as precious metal as well as monetary instruments all over the world. From ancient Roman gold coin to the ancient Chinese’s hat shape gold coin. A replica of these old Chinese gold coins is still available today. Since the day these coins were minted, they have note really lost their values.

           Current value of gold do fluctuate, so are these coins, but if you look at a time line versus value of these instruments, it always pointing up on the average.

            In my lifetime, when I was 10, I remember an ounce of gold was about $12. And that was 45 odd years ago. The price of an ounce of gold today is about $1100. Do you see any monetary instrument that has such a reliable upward record ? The exception is of course all the valuable collectables such as arts, other precious stones, one of a kind item. But these items are extremely expensive for most people to collect as well as dispose off.

           Gold instruments have been relatively easy to find and buy, and readily disposed off in many countries.

            Imagine, if you had a collection of Krugerrand coins today, you would be sitting pretty comfortable. And if you have a collection of those ancient Roman gold coins, you would be ten times as happy.

            Enough about the background of gold instruments. I had written an article on “Gold Investment in Bangkok “ 3 years ago in EzeneArticle.com. You can check that out if you want.

            Let’s put my money where my mouth is, I really started to invest in gold in 2005, when I bought a gold band for a wrist watch. It was about 2 ounces. It was a beautiful piece, especially when I bought it using a credit card. It took me a few months to pay it all back, but it was well worth it. Today, for that 2 ounces of gold band, the price has risen about 70%. So that is not bad. Today whenever, I have some changes I buy gold, sought of dollar cost averaging of gold.

            So when you average them out you still come out ahead.  And you have a good feel that 10 to 20 years from now, it still worth having.

            Even at today high price, I still buy when I have some changes. The price of gold is still going up, while the US dollar is fluctuating lower.  This is so because of the financial crisis of 2008 had put the US Government in more debt. Corporate assets had lost 30% of its value, about 14 trillions US dollars.

            So you see, it will take a while for the US dollar to strengthen. You can look at this at your level. If you have more debt than asset your financial status cannot be in a good shape, same thing with the Government. This means gold will continue to rise consistently for the near future, before it stabilizes and rises naturally as it has been.  

            So start invest in Gold in some forms that you are comfortable with.

            We have some references for you to look at ...

            Disclaimer: Above is for your information only. We are not financial consultants.

                              So do consult a financial consultant for his advice on gold as appropriate.