The economic world has had its fair share of bad news recently. The debt ceiling debate in Washington along with the slashing of America’s coveted AAA+ credit rating tanked the stock markets. Furthermore, with Greece receiving a bail out by the European Union, and Spain and Italy perhaps next the stock market has been more like a roller coaster ride than an investment venue. These financial problems have also caused gold to spike upward.
Many have been selling their risky stocks, and started to invest in gold. The current price of gold is hovering between $1700 and $1800 per ounce. In other words gold is at or near record levels. Job growth remains helplessly stagnated, energy prices are high, and there is talk that a double dipped recession may be in our future. This does not bode well for the stock market. On the other hand, investing in gold right now provides a hedge against these financial problems.
The American dollar is the currency of choice on the world stage. Yet, it too is high one day, and low the next. However, when you invest in gold you are investing in a real asset. Indeed, gold is almost its own currency. It can be easily carried and bought and sold worldwide. Still, gold offers much more worth than paper dollars. Printed money is backed by nothing tangible. Gold is a precious metal, is tangible, and offers a high price per ounce.
It is expected that the current rocky financial climate will continue. The debt crisis in Europe still hasn’t played out. In addition, nobody knows where America’s budget cuts are going to come from until later this year. Uncertainty is not the stock market’s friend. On the other hand, it is this same doubt that has hiked gold up to new heights. The time to invest in gold is now, because its price will continue to go up for the remainder of the year, perhaps longer.
Finally, the recent economic news of the world has not been good. The United Sates lost its AAA+ rating and the European Union may have to bail out Spain and Italy. This has caused stocks to plummet one day, and then rebound the next. Many have sold their risky stocks and invested in gold as a hedge. This makes sense because gold is over $1700 per ounce and climbing. The time to invest in gold is right now.