Gold provides not just safety to an investor from such economic monsters as inflation. Gold is also an investment and as an investment it provides an investor not only with safety against inflation but also with opportunities for profit – opportunities perhaps unequalled by other types of investments.

It is an intelligent move to seek refuge in gold whenever a crisis threatens an economy. Those in the know are quick to transfer their investments to gold when the economy is threatened by an economic ailment. They rely on gold is an antidote against inflation. Traditional mediums of investment like stocks and bonds and other paper investments are among the first to suffer losses. Gold is invulnerable to inflation. In fact, gold behaves differently from other mediums of investments whenever there is economic uncertainty. It thrives instead of getting depleted.

During economic difficulties, people move their funds to safer assets for safety. Gold provides not just safety but also profit. The increased number of investors increases the demand for gold and when the demand is high the price of gold naturally increases. Thus, historically gold prices rise during hard times. Many investors still recall their experience during the 1970s. Gold started at a low price of only $37 an ounce. When the decade was over, gold prices came close to $600 an ounce, an increase of 1,500%. The so-called Nixon Shock was the major factor that triggered this vigorous performance by gold. It was in 1971, during the Nixon administration, that the US suspended the direct convertibility of the US dollar to gold.

A more recent experience was the decade 2000-2009. Here gold put up another stellar performance stoked by inflation. Prices teed off at about $270 in 1970. By end-2009 the price of gold breached the $1000 mark to settle at a decade-ending price of $1,104, an increase of over 400%. Again, a $100,000 investment fund transferred to gold in 1970 by an investor to protect him from the prevailing economic difficulties would have, in addition, brought him tremendous profit.

Gold provides both safety and profit opportunities. Keep your investment safe and profitable with gold.

Zachary A. Pew