Gold investments: great potential returns, little risk

Posted on May 12th, 2009, by admin

The government is pulling out all stops in an attempt to pull our country out of its economic funk. But the question of the day is whether they’re making the right moves to actually turn things around or whether they’re sinking our nation further into economic distress.

One thing’s for sure: creating trillions of dollars out of thin air isn’t doing anybody any good. In fact, overloading our system with so many worthless paper dollars is just sowing the seeds for artificial inflation in record amounts.

Like every storm cloud, however, there is a silver lining for savvy investors. If and when the economy does pick up, intense inflation and resumed economic growth will send gold demand soaring. The reason is simply that people will wake up to the true value of gold versus paper money, which is essentially worthless without the backing of physical commodities.

Case in point: During the period of late-2004 to mid-2006, the Fed raised interest rates an astounding 17 times, from a low of 1 percent all the way up to 5.25 percent. In that short time, the value of gold investments skyrocketed 127 percent!

Even with the economy tanking, gold demand was surging. The demand for gold reached a record high of $79 billion in 2007 and then rose to $102 billion in 2008. All while the stock market was seeing record losses and the nation as a whole faced the possibility of a depression that rivals the Great Depression of 80 years past.

When the economy does finally make its comeback, gold demand will shoot through the roof, taking its value with it.

Now is definitely the time to jump headfirst into gold investments. You’ve got very little to lose and oh so much to gain.

For more information about gold investments or investing in general, please visit us online at www.weinvestonline.com.

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  1. Rachele Says:

    Very well put, Ron. My father has been telling me that for years. As a jeweler, I think he should provide me with the gold and I can wear it for safe keeping.

    Seriously though, gold is one of those investments that seem to weather the times.

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