For many of us, financial security is a goal worthy of admiration, but equally difficult to attain in the current economic state of the world. All over America, many are facing a lack of employment and increasing inflation, leading to the current turbulence of many citizens’ financial affairs.
With recovery slow to arrive, many economists and market forecasters are foreseeing further decreases in the already historically low buying power of the American dollar. This will result in a deeper inflation spiral, where even bonds wouldn’t be immune to the economic crisis, as the currency they guarantee may be devalued to the point of a net loss. The only way to shield you from this, is to have an allocation of gold in your portfolio. Unlike fiat paper currency, gold can never go to zero.
While paper investments would experience devaluation in troubled times, gold instead has a tendency to grow in value as the value of currencies themselves tends to degrade. The key to gold’s defiance of traditional prices lies in its world wide status as a physically traded commodity and a monetary asset with no counter party risk. The collapse or failure of any one economy plays much less a role in gold’s price than in any other investment plan. Many of the leading gold bullion distributors now offer their services online, allowing a greater level of availability for new investors in the gold market, and keeping prices low for buyers of all experience levels.