Lately, there have been confusing signals when it comes to the gold market. Some say it’s a good buy, especially since it trades at almost 40% discount to 2011 high. Gold is also recognized as a storage of value and an investment to hold during times of crisis and uncertainty. On the other hand, others feel that gold should be shorted. Which side is right?
It depends on the investment horizon. During a radio broadcast, an industry expert, Philip Diehl, stated that gold is good for long-term investing. On the other hand, in the short-term, gold can fluctuate.
Philip Diehl thinks that over the next decade the demand for gold will increase. Even now, the central banks around the world are increasing their gold reserves, a sign that gold is what it used to be for hundreds of years- a store of value and a viable alternative to paper money.
What’s more, populations of India and China are growing, all while getting richer. Much of the current demand comes from these countries, and that’s likely to continue into the future. Meanwhile, there’s another financial crisis on the horizon- due mostly to unresolved debt issues. All these factors are good news for gold and other precious metals such as platinum and silver.
Philip Diehl also recommended buying government-issued bullion coins such as the American Eagles. These carry guarantees from the United States as to their purity. No such guarantee is made when buying precious metals bars.
In the past, Mr. Diehl worked at U.S. Treasury Department and was a Director of U.S. Mint- an official mint of the American government. Presently, he runs U.S. Money Reserve, a recognized distributor of precious metal bullion coins. U.S. Money Reserve also offers IRA Accounts to the American residents with which it is possible to diversify retirement savings by acquisition of gold coins.