Turn to gold to overcome the financial crisisBlog added by Fred Greene on August 8, 2011
Atlas Precious Metals Exchange

Fred Greene

Boca Raton, FL

Joined: June 27, 2011

Recently, I learned that someone actually was interested in conducting a study on the relationship between prices of goods and commodities’ prices since as early as 1908. Chris Laird, the author of this study, is a certified Oracle database administrator, math teacher, and someone who has been exposed to financial news since childhood, since he grew up in a family practically immersed in this type of environment.

The study’s conclusion stood out: Gold is the one commodity that can be trusted to reflect the changes in the price of goods. If in 1908-1930 the price of a loaf of bread, for instance, was 10 cents, it is nowadays $3, which means 30 times higher. The price of the yellow precious metal is now roughly 30 times higher.

What exactly could have prompted Laird to undertake this kind of analysis, and why do I think the conclusion of it is so important?

People have been in search of a safe way to protect their savings since the disturbance brought by the current crisis. What they discovered is that this requires not only a careful choice of a mix of currencies (in times when liquid assets, like cash, are in trouble), but also precious metals stocks, like gold, can help hedge against the dollar decline. Even if we were to believe the manipulation story, gold is undoubtedly the one prospering market in these uneasy times.

Because of the gold’s performance during the years, it has become clear that owning gold in one’s portfolio is like an insurance policy. “Just in case the economy gets worse,” experts advise.

Gold is the safe haven in times of financial and geopolitical instability — otherwise known as the “crisis commodity.” It is not an exaggeration since gold has proved, in many situations, its ability to outperform other investments during periods of market turmoil.

I did a bit of research and found that it can be represented in one’s portfolio by gold bullion bars (bars can be supplied by banks and dealers); coins (priced according to their weight); certificates of ownership by gold investors (an alternative to storing the actual bullion); or even ETFs – the traded funds which are traded like shares on the major stock exchanges.

Irrespective of the investment method we choose, we should definitely stay in touch with gold news providers and publishers, if we want to preserve our savings. This will require closely tracking market news to be aware of any market developments and understand the gold market in a way that will allow us to make the best educated investment choices.

Stay in touch with the best gold news that will allow you to make the best decisions as to your investment.
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