In 2002 the gold value was under $300 an ounce. Today it has soared to over $1700 an ounce. That means in just under a decade the price has increased almost six times its original worth. While gold has had a few minor dips along the way it has proven to be a good reliable investment with excellent profit potential.
The current debt issues in Europe and the United States has rocked the world’s stock markets. Many stock investors have sold their risky investments and bought gold for protection. Historically gold has provided a hedge against an unstable stock market, and with the price of gold so high they are investing in the precious metal in large volumes. With gold value flirting with $1800 per ounce it is easy to see why.
It does not happen often, but when nations like Greece, Spain, and Italy could potentially go belly up it does make the stock market uneasy to say the least. The recent downgrade of America’s credit rating certainly added fuel to an already burning fire. However, there is reason for investors to be optimistic. Gold is setting records and its price has yet to peak. Indeed, gold is a good way to off-set any losses stocks bring to your portfolio.
There are those who think the economy must be creating more jobs for the stock market to truly stabilize. Yet, with debt stifling job growth this appears very unlikely in the foreseeable future. Yet, gold will remain not only stable, but increase in worth even more. Diversifying in gold just makes sound investment sense in the current economic climate.
There are a couple of ways to invest in gold. Some opt for gold bullion bars, other prefer gold coins, like the American Gold Eagle coin. The American Gold Eagle is minted and backed by the United States government. It is also America’s only investment grade coin. Since it is minted by the United States this coins is very popular with investors worldwide. Of course, gold bullion bars are an excellent investment choice too.
Finally, in 2002 the price of gold per ounce was under $300. Today, it is over $1700 an ounce and climbing. In just under ten years gold has increased six times its original worth. There are not many, if any investments that have experienced this kind of growth. Gold is rock solid and has not yet peaked.