The best way to buy gold
About a year ago at this time it was impossible to turn on the TV or pick up a newspaper without encountering something on gold. The asset’s price was soaring, hitting $1,900 an ounce in September 2011 and gold bugs were predicting that the yellow metal would continue to climb. Today, it seems as though much of the rhetoric has died down, probably because the price has moved sideways for the last 12 months. Today, gold is selling for around $1,750.
Just because it may not be breaking new price records doesn’t mean you shouldn’t own any gold. Historically, gold has been a great hedge against both inflation and poor economic performance. With continued deficit problems in Europe and the U.S. and a threat of a Chinese slowdown, it’s possible gold will rise again, says Stephen Lingard managing director of Franklin Templeton Multi-Asset Strategies. “Gold is a great hedge in this environment and that’s why we’ve seen such strong performance over the last few years,” he says. by Bryan Borzykowski
October 22nd, 2012 http://www.moneysense.ca Read More