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Saturday, September 26, 2009

Why Gold?

Whether as a stepping stone into the physical market, or as a move to diversify your investment portfolio, gold offers strong benefits to an investor.

Gold offers secure value and is easy to invest.Historically, the value of national currencies may rise and fall but the value of gold remains remarkably stable. Gold fulfils the function of money and is accepted worldwide as a form of payment. You don't need a huge sum of gold to begin investing gold bullion coins, for example, can be purchased from weights as low as a quarter troy ounce.
Gold is the most liquid asset.Gold can be readily bought or sold 24-hours a day in one or more markets around the world. This cannot be said of most investments, including stocks of the world's largest corporations. In addition, the trading spreads on bullion are generally narrower than the spreads on stocks and bonds (which are considered liquid assets).

Gold diversifies your portfolio.Gold's low-to-negative correlation with stocks and bonds makes it an excellent portfolio diversifier. In fact, many financial advisers recommend keeping 5% to 10% of your total assets in gold. With gold, you can help offset market fluctuations and reduce volatility

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Daily Silver and Gold Price Forecasts by Franklin Sanders (goldprice.org)