Gold and silver investing has been some of the most financially sound options for a diversified portfolio for literally thousands of years. Unlike a fiat currency, like the U.S. dollar, precious metals have intrinsic value that wold be useful even if the entire global economy were to collapse somehow. That being said, investing in gold is currently taking a bit of a hit around the world.
According to the investment and research analytics site MarketRealist.com, gold prices have remained relatively stagnant over recent days as those who would normally be investing in gold are waiting to see what the expected interest rate increase by the Federal Reserve will do to the market.
Although the advantages and disadvantages of investing in gold are constantly being debated, the U.S. has always remained one of the leaders in the industry globally. In fact, the United States alone circulates or deposits over $7.6 trillion worth of gold. In total U.S. mines produced 211 tons of gold alone in 2014.
The most recent data from December 9 revealed that gold futures for February delivery traded at $1,076.5 per ounce, which was a 0.11% increase.
The main reason for the current state of the gold industry stems directly from investors waiting to see what the Federal Reserve is going to do. Throughout 2015 the Fed has teased the notion that they will raise interest rates, which is expected to have a negative effect on investing in gold and precious metals in general. Unlike other forms of financial investments like mutual funds and savings accounts gold does not produce interest or any other cash flows.
Even the recent terrorist attacks in Paris had little effect on the price of gold. Typically volatile incidents like that will spark a rise in secure, sound investment options like gold.
While some would point to the status of the gold market as a reason to steer clear, others would argue it’s the perfect opportunity to invest in gold at a below market rate. If you decide the time to buy is now keep in mind that 24 karat gold is the purest form of gold (99.9% or more). It will be the most expensive to buy, but will also retain and increase inn value at a higher rate.
