Time to Buy Gold?

Gold doesn't care whether a financial collapse destroys the value of money (inflation) or the value of debt (deflation). Its unique characteristics — indestructibility and tight supply — mean its owners can thrive amid either.

But that doesn't make gold a "forever" investment. Gold will always lose value during stable periods of strong economic growth.

Over the twenty years to 2000, for example, gold lost 95% of its value in terms of US real estate. So it's no surprise that, as a proportion of world investment portfolios, gold fell from around 2% to effectively zero.

The trend in gold prices finally turned higher at the start of the last decade, just as Gordon Brown sold half the UK's national gold reserves at less than $300 an ounce!

Since then gold has trebled and more. But this gain remains small in the context of previous gold trends. It's also been limited by Western governments persuading their citizens that "core" inflation in the cost of living is running at just 2% per year or below. These official CPI figures, of course, exclude the cost of housing, mortgages, taxes, fuel, and saving for retirement. But this trick cannot go un-noticed forever.

PLEASE NOTE: I will receive a small referral commission for any accounts opened through this website, but the tiny dealing fees and storage charge you will pay would be no smaller without it. This ground-breaking service really does give you unique access to live gold market prices, cutting out the middleman and slashing the costs of investing in gold "dramatically", as the Financial Times recently noted.

Still not convinced? Watch this video...