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Investing in Gold: A Safety Blanket During Difficult Times

Investing in Gold: A Safety Blanket During Difficult Times

March 2, 2011 By Andrew Gilbert
PLANET INSANE

Amidst the challenging investment climate that most Americans currently face, a large number of people have been contemplating investments in gold.

Why are they doing so? Well, a majority of the typical investments are becoming more and more difficult to have faith in, real estate is down, stocks ramble with volatility, bond yields are low, the list goes on and on.

And when a majority of the other asset classes are experiencing volatility, gold investments have historically been known to go up. Want proof? Over the last year, the price of gold has risen over thirty percent!

Many experts suggest that in any market a good portfolio should contain a five percent gold investment at minimum. In a climate like today, many professionals are recommending all the way up to thirty percent.

There are also a number of options available to investors who are getting into the gold market, ranging from the purchasing the actual physical product, exchange traded notes and funds, along with a various number of mining stocks.

Most however recommend the first three options (physical gold, ETN’s & ETF’s) as there are typically less external factors that can influence the status of the company.

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