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Is Gold a Good Investment



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span                            let's look at how gold has been   
class="cap">There       performing throughout the years   
has been a lot of debate        and use that data to consider the 
over the years as to whether or       question.

                     
not gold is worth investing your      

First, if we were to take all  
money in. Some make the claim         of the years that gold's worth    
that it makes an excellent hedge      has been calculated up to the     
against inflation; others might       present, we would find that gold  
say that you can use it as a          has improved in value at about 2% 
quick fix for some extra cash.        annually. In the last 50 years,   
And then there are some that          things have been a little bit     
invest in it when the economy is      better, as gold has been          
bad because they feel if              increasing at about 4% annually.  
everything crashes, at least          So would it be a good long term   
their gold will still carry some      investment? Doubt it... most good 
value.                                index funds (something that might 
So what is it? Is gold a good         follow the S&P 500, for example)  
investment?

                       have been increasing on average   

Well- let's define                 at 12% annually in those same     
"investment" first; really, it        years. Do your research- you'll   
should be categorized into a          find the same data.

           
couple of different perspectives.     

Here's another interesting     
We either invest with a long term     thing: if you would have bought a 
approach, or we invest with a         bunch of gold back in 1983, you   
short term, turn a quick profit       would have purchased it for       
approach. In this article, we'll      roughly $510 per ounce. Thinking  
explore both the short term and       that it might be "a good hedge    
long term approaches to using         against inflation," you hold that 
gold as an investment.

            investment for the next 20 years  

Before we consider the above,      or so. By the end of 2005, if you 



were to have attempted to sell        

But what about now? Should you 
that same gold, you would have        buy it? Well... you decide.       
made literally NOTHING! That's        Typically, I like to buy low and  
right- in December of 2005, gold      sell high; don't we all? So...    
was being sold at $515 per            with gold being as high as it is, 
ounce!

                            the worst decision you could make 

If you take inflation running      would be to buy it. Don't touch   
at about 3% into account, you'd       it!

                           
have found that gold would have       

So, in short, is gold a good   
lost you a substantial amount of      investment? Absolutely NOT! Stay  
money.

                            away from                         

Is good a good investment?         it.

 
Considering the numbers, it           About the Author
wouldn't be good long term.

       id="authorbio"                    

How about gold as a short term     class="membersnoticewhite">investment? Currently, gold is        color="#001000"                   
being traded for roughly $875 per     size="-2">http://www.financialnut 
ounce! In the last several years,     .com - dedicated to improving the 
it's been increasing at an            world's financial IQ one blog     
astounding rate! So now would be      post at a time! You've asked the  
a good time to buy, right?            question before,
Absolutely not! It's only been in     href="http://www.financialnut.com 
the last few years that it's          /is-gold-a-good-investment/">is   
really gained any ground; if you      gold a good investment? Visit 
look into history, anytime gold       Trevor, the author, at            
begins to look up, it ends up         Financialnut.com for more on      
taking a hard fall. If you would      personal finance                  
have bought gold in the last          advice!

couple of years, now might be a       v>                                
good time to sell it!

             




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