Is Gold A Best Investment For Now?

Why should you make investments in the precious metals? There are lot many reasons for it. The best one is that due to the present economic downturn and other debilitating events around the world it is the only worthwhile place left to park your funds. Now instability has become a common thing and we are being told that situation is slowly turning normal, but the preponderance of the evidence tells us a different story.

To make investments in the stock markets you would require the nerves of the steel and a liberal supply of the antacid medicine! The return of the stock in the past ten years has been nearly 0% that holds true if you were not that lucky to make investment in the NASDAQ in the year 2000, which has not been able to recoup even 50 % of its normal value in March 2009. Really, in past ten years the returns on stocks have been negative if we consider the inflation rate. It was during this very decade that the real estate and the corporate profits were increasing substantially. Now the economy of the world in faltering and the corporate profits and real estate markets are deceleration, really now the stocks are not an asset class for you to be in.

If we observe minutely, gold has nearly quadrupled in value since the year 2000 as huge number of investors have been lured by this precious metal as these people amply realize that gold is still undervalued. If we ourselves see this, and adjust the inflation, we will see that gold really is still too much undervalued.

Now investors are asking for lot more of this precious metal as a hedge and the safe investment in these uncertain times. The trend is amply evident now, as countries like India and China have made huge purchases very recently to safeguard their wealth. Gold is in very limited supply and is also a depleting asset, the productions from the mines and also any new discoveries has been decreasing over years, exerting undue pressure on the gold prices.

The trends in the gold are becoming more and more clearer with every passing day as due to economic downturn and uncertain times, large number of sensible investors have started flocking to the markets to buy gold both as investment and also as a way to protect their hard earned wealth.

Michael has been writing articles online for 10 years. Check out his latest website retirement investing which help people find more about active retirement.

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