Tuesday, 14 December 2010

With the latest hype in gold, it is important for investors to know all the facts. The weakening dollar has led to the rise in gold prices and currently gold is the monetary unit which other currencies are being valued. Some financial analysts and advisers are recommending reallocating funds from investments such as stocks, bonds, CDs and mutual funds into tangible assets that do not rely on the stock market. But before you reallocate your money into gold, consider the following points.

Gold is being pushed by fear and a bad economy, inflation and TV marketing. Ten years ago the ratio between silver, gold and platinum was 17 oz. of silver to 1 oz. of gold and 3oz. of gold to 1 oz. of platinum. That ratio had stayed pretty static for over 50 years. Today, the ratio is 59 oz. of silver to 1 oz. of gold and 1.2 oz. of gold to 1 oz. of platinum. Fear, government spending and heavy marketing by TV gold resellers has pushed the perceived value of gold very high compared to silver or platinum. The rule is to buy low and sell high.

Gold is at an all-time high. Will it go higher? Probably, but at some point it will turn and when it does, its value will likely drop very fast. If you have gold or you are thinking of buying gold, you need to follow the economy very closely. Watch for a noticeable improvement in the business sector GDP, new jobs, end of government bailouts and end of spending. This is when gold may start dropping. Gold has served in this role for thousands of years, but laws created by governments that have grown too big to put this role in doubt today. Gold Confiscation is still on the books.

We have released two new reports to help educate you about gold and the economy. These two reports cover laws that affect gold ownership, and what options you have in this economy to protect your wealth. Learn about the best way to own gold, how you can protect your wealth with tangible assets, and signs you're paying too much for your investment.

To Read our latest reports on Gold and the economy, CLICK HERE.