Invest Gold Now

Is Now a Good Time for You to Invest Your Nest Egg in Gold?

Google the word “gold” and you’ll have no trouble finding dealers and brokers shouting the many praises of gold. But, talk is cheap. Is there really any concrete evidence to support all of those optimistic claims?

There is.

While it is true that gold tends to be seen as a controversial and anti-establishment investment by much of the media, the truth is much of this opposition to gold is both misleading and ill-informed. It turns out there is a significant and growing consensus among academics, independent researchers, and asset allocation experts that support the position of gold as both a hedging instrument and safe haven asset.

Just who is saying this?

How about researchers from such a diversified group of leading firms as Mercer Consulting and Ibbotson Associates, New Frontier Advisors, Hiller Draper, Wainwright Economics, World Gold Council, Bauer and McDermott, and the respected international think tank Chatham House?

So, what exactly are they saying?

• “A 5% investment of an equity portfolio in gold resulted in lower risk and higher return on assets.” Some experts argue that for optimal downside protection an allocation of 6% to 25% is even better.
• One research paper clearly showed gold’s importance to a diversified portfolio due to gold’s “unique properties as simultaneously a hedge instrument and safe haven.”
• Many studies have shown that precious metals are one of the few asset classes with a positive correlation coefficient with inflation. In fact, precious metals are shown to be “the most positively correlated asset class to inflation.” One researcher determined that portfolios could reduce risks and improve returns with a 7%–15% allocation to precious metals bullion.
• Another important study found that gold is “the most effective indicator of rising inflation.” Not only was gold shown to be the most accurate indicator of future inflation, it was also an effective hedge against inflation.
• Not only is it a hedge against inflation, gold was shown to be an effective hedge against deflation too.
• Gold is not only an asset that goes up with inflation, it actually increases at several times the rate of inflation.
• A 1% increase in the money supply can trigger an average 0.9% increase in the price of gold ––6 months later. With the recent application of Quantitative Easing, if this holds true then gold’s price should be expected to rise significantly.
• Gold is also an excellent indicator of the velocity of money, especially in the U.S. Gold’s price anticipates an increase in the velocity of money and interprets it as future inflation.
• Gold is a proven haven against currency storms and black swan events.

Is Now a Good Time to Invest in Gold?

With prices at current low levels and expected rises in gold’s demand as the world heads toward a multi-currency reserve system, the answer would seem to be a resounding “yes.”

Add to this, the Federal Reserve’s continuing program of profligate money printing, projected global crisis in world currencies, the promise of rising interest rates which in turn promises to raise inflation, and predictions of coming stock market event––whether it’s significant correction or a full blown cash crash will remain to be seen––and you have four great reasons for buying gold:

Now.

Why Invest in Gold?

Because throughout history, gold has been viewed as a traditionally sound store of value. It is an essential currency that cannot be manipulated by the interest rate policies of any one government.

• Gold is the ultimate hedge against inflation. As the world’s currencies decline, money moves to gold in order to take advantage of its traditional protection.
• Gold is also growth: Over the last 10 years, there is no other paper investment that has had the return on investment that gold has––over 300%!
• Gold is a counterbalance to market volatility. Because it is a security that is uncorrelated with stocks or bonds, it has traditionally gained in value during times that the stock market plummets when investors look for more stable investments.
• Gold has no counterparty risk. When you own physical gold, there are no worries about a “promise to pay” as there are in other paper assets. As has been said, gold is not an investment, gold is real money.
• Gold is the ultimate liquid asset. Whether its coins or bars, it can be sold easily and quickly. This also makes gold a safe investment.
• Gold can offer your portfolio greater diversity and balance as an asset class because it does not correlate with stocks and bonds.

All this considered, gold is one of your best ways to invest.

Learn More

To learn more about gold and the many reasons why your portfolio could benefit from gold and silver investing, download our mini-course and guide. It’s absolutely FREE and is full of tips, gold investment strategies, and information that could save you thousands of dollars. For information on how to invest in gold you can also learn more by speaking to one of our experienced investment specialists. Call us at 213-465-4835 or visit us at www.RCBullion.com.