controversies of gold investment
Gold, despite its beauty it still has lots of controversies in terms of it being an investment product. I’m always open to the idea to buy gold coins. But, I’ve heard several opinions regarding it. Some people suggest the opposite of the positive outlook over earning from it. Some even suggests we are approaching a gold bubble. Are we?
It is true; gold has been receiving special attention from investors since last year. That even intensifies when the price hit its all-time highs. Even with all the interest in gold we are far from approaching a gold bubble.
Historically, gold has always been known as a safe-haven investment because it retains value. Since the turn of the century, we saw the United States suffered great inflation and recession. Of course, investors flee to gold to protect their investments.
Mining companies felt the pain when gold prices fell to around $300/oz. Many decided to cut their expenses and abandon all mining projects in order to cut costs and keep revenue. Now that gold has once again soared, mining companies are back in the game and moving at full speed exploring 20-30 year-old deposits with new technology as well as exploring untouched deposits.
Some investors suggests that we will see gold consumption increase even higher in the future. As far as the gold rush coming to an end, it’s something that we probably won’t see in the near future.
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Posted by Denz
on Jul 3 2010. Filed under business ideas, thoughts & ideas.
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hey bloggers! i’m back!!!