With the current economy seemingly in shambles, most investors are taking it easy when it comes to putting people’s money in the volatile stock market. With the media reporting about the Tea Party’s dissatisfaction over the country’s direction, the entire European Union having to bail Greece out of debt, and the current generation worried about not being as well-off as previous ones; there is hardly any good news reported about our financial stability.
If you are up late watching reruns of Family Guy or are tuned into any one of the 24/7 cable news networks, chances are you’ve heard about investing in gold. You might have received a stock newsletter in the mail from the Ron Paul stock newsletter talking about his attack on Federal Reserve Chairman Ben Bernake about gold being on the same level as money. Add in a whole crop of shops popping up in strip malls, next to pawn shops, and in retail supercenters, and it is very difficult to avoid all of the noise these gold traders are making.
If you are interested in turning your traditional stock market investments into gold stock, are worried about a future where money is obsolete, or want to unload some of the excess gold around your home for quick money; there are a couple of important things to consider:
What’s Wrong with Traditional Investing?
When the housing bubble crashed during the 2007-2010 economic crisis, people were spending too much money they didn’t have on things they didn’t need. When too many people are purchasing things, and then start to suddenly not purchase; the market becomes stagnant and a stock market bubble occurs.
When you step back and think about it, what is money? It’s just an idea that looms in our heads. With the prevalence of debit and credit cards, the green bills issued by the Federal Reserve are going to soon become irrelevant. With all of your finances being taken care of electronically, there is some fright to trusting a bank whose data center might become damaged or whose employees might commit fraud or error. Having a solid hunk of gold eliminates most human and natural disaster.
The Real Value of Gold
Gold was used as a form of currency in many cultures; from Ancient Greece to Ancient China. In the US, the Federal Reserve abolished the Gold Standard that countries all throughout Europe had been using for their currency for a couple of centuries. According to James Picerno of CBS’s MoneyWatch, gold is a historical store of wealth that survives through disasters, calamities, inflation, and politics.
There are, however, some cases against gold. It is standard theory that the stock market will eventually go through recessions, depressions, and booms. Some equate purchasing gold to putting your head in the sand
How to Avoid Scams
There are a lot of ways to take advantage of people who want to turn to gold. Most of the services on television are going to sell you gold for more than the standard price of the commodity in order to make a profit.
According to a report on Fox11az.com, the Better Business Bureau suggests you do your research before unloading your gold. Services that offer you cash for mailing in your gold can often find ways to avoid paying you and might even steal your gold. Stores in the mall are the safest bet for selling your precious metal, just be sure to do your research and find out how many carats are in your gold. 24Kt gold will go for the most money while lower quality gold will not get you as much.
If you are weary about purchasing or investing in gold, turn to a trusted and certified financial adviser before making a brash decision with your finances.