Current price of Gold

 

 

 

With the price of gold rising, is it still a good time to buy?

 

At the time of writing - November, 2009 – I would say yes.

Getting the timing right when buying gold is always tricky. If it wasn’t, then we’d all be rich. We would all buy when the price is low and sell when it is high.

So the question to ask right now, with gold priced at over $1,100 an ounce, is whether the recent increase in gold prices will continue or not.

 

Chances are, it will. Large buyers of gold, like China and India, are buying more, even at this price. And the U.S. Treasury Department is showing no signs of selling any of its gold reserves, valued at about $288 Billion.

 

At the same time, uncertainty about the value of the U.S. dollar continues. And as I have written elsewhere, uncertainty about the dollar is a major factor in the growing value of gold.

 

All that said, keep in mind that this website in focused on the benefits of owning gold, not on buying and selling gold as an investment.

 

Owning gold is a way to secure a proportion of your wealth in what is described by many as a “safe haven”. It’s where you put your money when you lose confidence in cash, stocks and bonds.

 

According to a recent article on CNN.com, the stability of gold as a reliable store of value is alive and well.

 

Here are a couple of quotes from that article.

"From the mid-14th century until now, you can draw a relative straight line in the purchasing power of gold, and every central banker in their heart knows that," said Judy Shelton, an economist and director of the National Endowment for Democracy. "Gold is universally recognized as a store of value. That's important because it denotes price stability."

 

"Gold is gold," said Nathan Lewis, author of Gold: The Once and Future Money. "There's no real change in gold's value. Only the value of paper currency declines."

In answer to that original question, yes, it is still a good time to buy gold. There is enough uncertainty out there to warrant placing some of your wealth in the safety of gold.