Why I Buy Gold

I save a little money each month so that a couple times a year I can buy a couple ounces of gold. There is a lot of debate about the benefits and costs of investing in real metals, but I think it is absolutely worth it. Buying gold diversifies your investment portfolio and provides a hedge against inflation. In addition to these perks, gold is an investment that has been steadily outperforming other investment options in our sluggish economy.

Sound investment strategies include diversification. Most of us take the little bit that we save each month and put it in an investment account based on mutual funds, IRAs, life cycle funds, or individual stocks. All of these assets are stock market driven and thus deeply tied to the rise and fall of the Wall Street managed market. Even if you have a retirement account that is well diversified and managed by a professional broker, the account is still only diversified within the narrow window of Wall Street managed accounts. Investing in a tangible asset, like gold, is an easy way to begin your branching out from the Wall Street controlled assets.

Gold is universally valued as currency and can be easily exchanged for cash. I think America’s debt will drive inflation and I am looking for ways to protect myself from the devaluation of the dollar. Gold is an easy hedge against inflation. Gold will maintain its worth as a precious metal, but as the value of the dollar drops, it will drive the price per ounce of gold higher and higher. When inflation hits, you do not want to have cash in your bank account because it will begin losing value. Instead, I’m going to have gold in my safe, and it will be gaining value.

I Buy Gold because I think inflation is on the way and because I don’t want to put all my eggs in one basket, especially when the basket is a post bailout Wall Street bank.