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Many analysts are looking at the current market as a very good opportunity to increase gold investment. When fear has a strong hold in the market like it does now, gold has a very good chance to increase in value. Any additional weakening in the global economy might reduce energy or stock prices, but could position gold prices for the run many have been anticipating.

The current adjustment in gold prices has coincided with a strengthening of the US dollar; while this is common, analysts expect gold to turn regardless of the dollar. Such a decoupling would be a shift from the inverse relationship they typically share and suggest resuming of the bull run on gold.

While the US Dollar Index has been near 78.5, gold has dropped just below the $1,100 mark. Gold futures show signs of upward movement in spite of the dollar being up, indicating to many that additional spot price increases are coming.

As strategists predict a strong climb in price of this precious metal, what are the best gold investments to consider? While many might suggest gold stocks because they are undervalued, they present a risk that isn’t palatable for most investors. That said, gold bullion and certified gold coins may offer the best combination of profitability and security for many people.

Like other commodities, gold prices react to greed and fear among its investors. If the news is good and the indicators line up right, fear subsides and the greed of profit taking begins; when things are uncertain, fear dominates many people’s decisions about investing. Gold bullion and certified coins both retain value during even the roughest of times, and could have high potential as gold investment appears primed for a run. 

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Stewart Lawson

Senior Staff Writer - Gold-Investment.info