Saturday, November 14, 2009
Tuesday, November 10, 2009
Is gold a good investment option during recession?
There is a huge demand for gold worldwide and gold prices are seeing a correction. Gold as an investment option is being considered by most stock experts and analysts. The recession has seen a slump in the stock markets, companies are under financial crises, banks have declared bankruptcy, so the investor is quite scared of his hard earned savings and is considering gold as a safe and sound investment. Gold acts as a good hedge against inflation, it can give you instant cash and even if the economy is bad you will still have reason to smile, as you will have gold which will not lose its shine quite fast.
When people invest, they either have a long term goal playing on in their mind or a short term period where they will get sufficient returns. You can use gold as a short term or a long term investment. Research and analysis suggests that gold has grown by at least 2% in the last 50 years and the present decade has seen the gold market grow at 4% annually. The gold market has seen fluctuations and in the year December 2005 itself it was sold at roughly $500 per ounce.
But at present gold is being traded at about $900 per ounce and that is definitely a great increase compared to the year 2005. if you have gold right now then you stand to gain if you sell off at this very moment and you can nearly double your cash. People are wondering if it is the right time to buy this yellow metal, but you never know. Gold prices could hit rock bottom and you may end up a loser. But it is surely the right time to sell off of you are holding gold stocks and options.
This precious yellow metal has never shone so bright. But it is certainly not a short term option, because gold has seen to fluctuate quite a bit and you may burn your hands in this process. Gold prices may climb up but that is not sure because the market is quite volatile. It is better to stay away from gold in this recession time. you can invest a little of your investments in gold to diversify your portfolio but it certainly is not a good option to put all your hard earned earnings into gold.
When people invest, they either have a long term goal playing on in their mind or a short term period where they will get sufficient returns. You can use gold as a short term or a long term investment. Research and analysis suggests that gold has grown by at least 2% in the last 50 years and the present decade has seen the gold market grow at 4% annually. The gold market has seen fluctuations and in the year December 2005 itself it was sold at roughly $500 per ounce.
But at present gold is being traded at about $900 per ounce and that is definitely a great increase compared to the year 2005. if you have gold right now then you stand to gain if you sell off at this very moment and you can nearly double your cash. People are wondering if it is the right time to buy this yellow metal, but you never know. Gold prices could hit rock bottom and you may end up a loser. But it is surely the right time to sell off of you are holding gold stocks and options.
This precious yellow metal has never shone so bright. But it is certainly not a short term option, because gold has seen to fluctuate quite a bit and you may burn your hands in this process. Gold prices may climb up but that is not sure because the market is quite volatile. It is better to stay away from gold in this recession time. you can invest a little of your investments in gold to diversify your portfolio but it certainly is not a good option to put all your hard earned earnings into gold.
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