Why Is Gold A Good Investment?

The question, "Why is gold a good investment?" is often ask by those who have little or no knowledge about its history.

If your are thinking about entering the trade, this is certainly a legitimate question.

Looking back at the historical price of gold, does support the fact that it has been excellent in the past.

But what about the future, what does it hold in store for gold investors?

There are several events unfolding today that support a major rise in price. When exactly it will occur, and how high it will go, no one knows for certain. But there are some analysts that are predicting as high as $5000/oz.

Demise of the Dollar

One event in particular, and probably the most significant, is the demise of the U.S. Dollar. The value of the dollar has an inverse affect on the price of gold. When the dollar loses value, gold gains in value.

The popular report titled "Greenbacks & Gold Bars" will help you understand how a devaluation of the dollar is imminent.

Supply vs Demand

Another major reason for a likely rise in price is the supply and demand ratio. The demand for gold is outstripping the supply more and more every day.

Foreign countries are sinking their currency reserves into it in record amounts. Couple that with the private demand for investment type gold increasing, and you can see the supply dwindling.

Dow vs Gold Ratio

One of the more interesting indicators is the Dow vs Gold Price Ratio. Click Here for a detailed look at this ratio.

The previous knowledge should be sufficient in answering the question, "Is Gold A Good Investment."

If you are convinced, the next step is to learn

how to buy gold.

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Jeff Sneeringer

Jeff Sneeringer

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