| There has been a lot of debate over the years as to | | | | bought a bunch of gold back in 1983, you would have |
| whether or not gold is worth investing your money in. | | | | purchased it for roughly $510 per ounce. Thinking that it |
| Some make the claim that it makes an excellent | | | | might be "a good hedge against inflation," you hold that |
| hedge against inflation; others might say that you can | | | | investment for the next 20 years or so. By the end of |
| use it as a quick fix for some extra cash. And then | | | | 2005, if you were to have attempted to sell that same |
| there are some that invest in it when the economy is | | | | gold, you would have made literally NOTHING! That's |
| bad because they feel if everything crashes, at least | | | | right- in December of 2005, gold was being sold at |
| their gold will still carry some value. | | | | $515 per ounce! |
| So what is it? Is gold a good investment? | | | | If you take inflation running at about 3% into account, |
| Well- let's define "investment" first; really, it should be | | | | you'd have found that gold would have lost you a |
| categorized into a couple of different perspectives. | | | | substantial amount of money. |
| We either invest with a long term approach, or we | | | | Is good a good investment? Considering the numbers, |
| invest with a short term, turn a quick profit approach. In | | | | it wouldn't be good long term. |
| this article, we'll explore both the short term and long | | | | How about gold as a short term investment? Currently, |
| term approaches to using gold as an investment. | | | | gold is being traded for roughly $875 per ounce! In the |
| Before we consider the above, let's look at how gold | | | | last several years, it's been increasing at an astounding |
| has been performing throughout the years and use | | | | rate! So now would be a good time to buy, right? |
| that data to consider the question. | | | | Absolutely not! It's only been in the last few years that |
| First, if we were to take all of the years that gold's | | | | it's really gained any ground; if you look into history, |
| worth has been calculated up to the present, we | | | | anytime gold begins to look up, it ends up taking a hard |
| would find that gold has improved in value at about 2% | | | | fall. If you would have bought gold in the last couple of |
| annually. In the last 50 years, things have been a little bit | | | | years, now might be a good time to sell it! |
| better, as gold has been increasing at about 4% | | | | But what about now? Should you buy it? Well... you |
| annually. So would it be a good long term investment? | | | | decide. Typically, I like to buy low and sell high; don't we |
| Doubt it... most good index funds (something that might | | | | all? So... with gold being as high as it is, the worst |
| follow the S&P 500, for example) have been | | | | decision you could make would be to buy it. Don't |
| increasing on average at 12% annually in those same | | | | touch it! |
| years. Do your research- you'll find the same data. | | | | So, in short, is gold a good investment? Absolutely |
| Here's another interesting thing: if you would have | | | | NOT! Stay away from it. |