Daily News

March 6, 2010 – For people with stock, savings or other paper investments, gold investment can be a profitable way to add asset protection and portfolio diversification. Over the past ten years, gold has increased 277 percent, providing an annual return of nearly 15 percent, while offering a tangible asset to investors.

This return beats of traditional investments and far exceeds inflation, which has averaged 2.7 percent over the decade. Stocks and savings, according to Myra Butterworth of the London Telegraph, struggled over the past decade, only bringing 1.8 and 0.57 percent respectively, meaning that both effectively lost money when inflation is included as a factor.

Demand continues to make gold investment a valuable part of a portfolio. Gold has already gained 6.7 percent since hitting a low in early February and 2010 will be the tenth straight year of annual gains if it maintains its current strength. “Gold was the top performing asset during the decade, largely reflecting increased demand from China and India for industrial uses and jewelry," said Suren Thiru, an economist at Halifax.

Responding to the prospects for gold investment in 2010 Thiru said, "Monetary and fiscal policy decisions…and the strength of demand from China and India are likely to be important determinants in 2010."

Jeffery Nichols, MD, American Precious Metals Advisors said, “"I am looking at the end of 2010 [for gold] to hit the $1500 level - it doesn't mean it's going to hit $1500 and keep rising indefinitely, but we will see $1500 at some point in 2010.” Such strength makes gold investment valuable for portfolio diversification. 

Daily Updates Archive

Stewart Lawson

Senior Staff Writer - Gold-Investment.info