All we have been hearing recently is how you absolutely must get your hands on gold. Re-mortgage the house, use the kid’s inheritance, get a part time job and put it all into gold. Even eBay have recently joined in on the peer pressure like activity, by setting up a new online emporium, with a precious metal dealer. One thing we have to consider, however, is what is in it for them?
As magical as gold is, it is not completely invincible, and like any investment, there are good times and bad times to invest. The fact that the mainstream is now ploughing into gold investment, should serve as the first sign that perhaps it is on its last legs, for now, as a beneficial investment option.
Below we will last five reasons why you should ignore the rallying cry and resist investing in gold.
1. The Mainstream is in; the boat has set sail
For any seasoned investor, mainstream interest usually serves as a warning. Quite simply, if the mainstream is interested, it usually means that the major opportunity for investment has already gone and the boat has set sail. Indeed, many experts are even suggesting that they may be ten years too late already, and numerous people have warned about a similar crash as the dot.com industry, or even property experienced in recent years.
2. Gold is not a procreative investment
Simply, as recently put by Warren Buffet, in his all out attack on gold purchasing, if you buy one ounce of gold now, you will still own one ounce of gold in a thousand years. It doesn’t do anything, go anywhere. You can poke and prod it, but it still stays the same. When compared to agriculture, for example, where you can grow crops, make profit, buy more land, advance and develop, gold is a rather stagnant and some would say boring investment.
3. Boom and Bust
Gold has historically gone through boom and bust periods. Indeed, before it’s last major bust it had multiplied five times in value over the course of a decade. Before that boom period, it had lost money for 20 years. Gold has been rising in price for a long time now, but don’t expect it to last forever. Also, in terms of an investment, you are spending a lot more on gold, today, than you would have done even just two years ago, and that should serve as a sign that perhaps the opportunity has passed.
4. Reattachment to currency unlikely
Many advocates for gold investment suggest that as a result of economic strife, it is highly likely that gold will be reattached to currency once more. The issue with this, however, is that the future structure of the world will be designed by powerful countries. Currently, there are many powerful countries with very little gold, and many gold rich countries with very little power. It is thus unlikely that gold will be reattached to currency any time soon.
5. It is not progressive
Many experts, opposed to investing in gold, state that it is fundamentally not progressive. There are many young entrepreneurs, social initiates, community projects, and numerous other beneficial new investment opportunities. Gold is almost seen as an entirely selfish investment, when rather they could be investing back into their country, or area, or into supporting people who really need their assistance. If everyone was simply to invest their money in gold, then progress simply wouldn’t happen.
Despite this new found obsession in gold investment, it is not a quick fix solution and it is certainly not right for everyone. Although some may benefit form having gold as part of a wider portfolio, simply putting all of your spare cash into the metal doesn’t make a whole lot of sense.
Bill runs 247 Cash For Gold. If you have any old gold lying around the house, you too could benefit from this new obsession, by selling. Simply by visiting www.247cashforgold.co.uk, you can get cash for your old gold today. With gold prices so high, this makes a lot more sense than buying gold right now.