Buying Precious Metals—Is now the time?

Most investors know that investing in precious metals is a good idea. The question rarely arises as to whether or not one should invest in them; instead, what is often asked is “is now the right time to invest in gold and other precious metals?”

You would be hard pressed to find a time that isn’t right. In reality, it all depends on what your goals are. Gold has historically worked in yearly trends, and for the last decade, gold has appreciated in value at an amazing pace. Listed below are the yearly averages for gold in the last decade:

What this tells us is that the prospect of gold prices continuing to rise isn’t based on mere “speculation,” but rather it is based on historical precedent. Of course, just because gold is rising in price yearly doesn’t mean that there isn’t a smarter time to buy within each year.

For the investor looking for the right time to get into the market, the summer months tend to provide a significant enough dip in the spot price of gold, translating into a more dramatic pickup in the winter months.

By the same token, though, for the investor looking to own gold long term, buying at any point in the year would have represented sound timing. Sure, buying in the summer months may further your profit margin, but the reality is that if you’re holding this metal for three or even five years, you’re probably going to make respective returns anyway.

Gold continues to appreciate. The notion that gold and the economy are inversely proportional doesn’t always apply. In the last decade, the United States has seen economic growth as well as near economic collapse, yet gold has appreciated despite all this.

Now is the time, more than ever, to invest in gold. Call United Gold Group at (800) 488-3903, and ask to speak to one of our Senior Account Executives, who will be more than willing to help you get on the right track and provide you with the input necessary to make informed and profitable decisions.

value of gold : Gold – The Sound Investment

The value of gold continues to grow. This isn’t speculation—this is an empirical fact. While your shorting stock trader may look at a day-to-day slide as an indicator of decline, this simply isn’t the case. Many people have been brought up with the notion that sound investment means investing in low-risk stocks. Unfortunately, a “low-risk” stock doesn’t exist—only “lesser risk” stocks exist; and usually, these stocks are ones that are so inflated in price that the barriers of entry for your average investor are just too great.

Even if one were to get their hands on one of these stocks, a single painful reality still exists: a stock can default, plummeting to something of literally no value. Sound investment, then, is investing in something that has been shown to produce a return and has never hit rock bottom.
One such asset is gold, and other precious metals. Investors shouldn’t be discouraged when gold prices take a slight dip. More often than not, the “economic experts” who urge people to remain upbeat and positive about the failing stock market are the same people who try to strike fear into people when gold so much as falls by a few dollars.

Take, for instance, one example. From an all-time high in June 2010 to a slight decline in July of 2010, gold dipped only 5%. On the other hand, during the same period of time, the stock market has dropped between 7% and 8% across each of the three major United States markets—with no all-time highs, and week-long slides. Yet you hear these same fear-driving experts telling unsuspecting investors to liquidate their gold and precious metal assets in favor of stocks that are likely to “rebound.”

Unfortunately, those who get caught up in this usually end up losing substantial portions of their portfolios and watch from afar as the gold they once physically held in their hands increases in value yet again. This is the simple truth: liquidating a long-term asset, such as gold, in order to invest in a short-term asset that is being advertised as long-term just doesn’t tend to work.

If you are actively investing in gold or are looking to enter the market, the best advice one can give you is this: do not be deterred by miniscule dips. These dips often provide a great potential entry point for new investors, but do not necessarily negatively impact investors who are looking to hold onto their assets for multiple months at a time, if not years.

If history is any indicator for the stock market, it should continue to be a volatile investment path. If history is any indicator for gold, it should continue to appreciate and act as a safe-haven for long-term, responsible investment.

Which would you rather bet your hard-earned money on?

For more information on gold stock investing, including how to get on the right path to diversifying your investment portfolio with gold and other precious metals, call United Gold Group at (800) 615-1513, and ask for a Senior Account Representative who will be more than willing to get you started.