Gold bullion experienced a short pull back in prices in December 2009, there are now signs that the gold price blip may well be over with gold back on track for new highs.
After an exciting 6 month rally in which gold prices moved from below $900 an ounce to over $1200 gold dipped in a profit taking correction at the end of last month to just below $1100 an ounce. Today the gold price is back up $1150 an ounce with an upward trend showing signs that the next leg in the gold price rally may well be underway.
Should you be buying gold bullion personally?
Maybe you’re thinking well sure if I had the money and the place to store it why not! Firstly you don’t need to hold it or even see it, it’s just about as easy to have gold bullion in your name in a secure bonded vault as it is to hold cash in the bank; in fact, some would say judging by recent banking performance, possibly holding gold is even more secure than keeping money in the bank.
Gold bullion ownership isn’t just for the seriously wealthy either, the smallest individual unit you can purchase gold bullion in is by the gram, which will cost no more than the price of a meal out. You can build up your gold bullion holdings just as you would cash in a bank and what’s more it’s easy enough to transfer a percenage of your from gold bullion to cash and buy back again later, so unlike other alternative investments such as real estate you won’t need to fit a new kitchen before you put it up for sale…
Why should you take a serious look owning gold bullion?
Our answer is that gold prices overall have always stood the test of time and have proved to have been one of the most consistent ways to avoid loss of wealth created by sharp rises in inflation or political and global uncertainty.
Gold doesn’t tend to be as reactionary or hysterical in it’s behaviour as the stock market often is, so you won’t need to panic so much when you hear anything negative on the news. In fact maybe just for the sake of your personal stress levels and some healthy stock market paranoia diffusion, holding a stake of your wealth in gold might well be worth serious consideration.
A few people have said, well what if we’re at the start of a great stock market rally, I don’t want to miss out on this one after losing so much in the last crash…
Firstly you can diversify and there’s nothing to prevent you altering the percentage of gold held in your portfolio according to your risk appetite, if you’re sure the market can only go up and this time you’re bound to win, then the Wall Street Casino is always ready and open to take new dollars. It’s worth noting though that Gold has already matched the US’s longest stock market rally ever which ran from 1982-1989, averaging annual returns of 16% since 2001.
Gold unlike the many currencies that have come and gone through history has always held value, there’s never been a time when we’ve decided to use gold bullion bars to prop a door open, or at least not in regular family households. On the other hand quite a few currencies have ended up being a great way to light a fire…and let’s be honest inflation is nothing more than the steady descent of all currencies to a value of ZERO!
If you’re interested about gold price stability and buying gold bullion securely and safely online we recommend that you visit Bullion Vault and register to learn more. Registration is free, they actually give you a free gram of gold to get started with too! We do receive a tiny referral fee from Bullion Vault when investors learn about Bullion Vault via Shelter Offshore.
