Investing In Gold And Silver For Capital Preservation And Appreciation

Are Your Stocks Earning as Much as this Gold Fund?

There's no question that people have started to doubt the US economy's stability, but the rest of the global market has not done any better. With all this uncertainty hovering around investments, people are starting to place their bets on stable outlets such as gold. Buying and owning gold bars can be quite a hassle, however, so many people invest in gold-backed ETFs and mutual funds instead.


There’s no question that people have started to doubt the US economy’s stability, but the rest of the global market has not done any better. With all this uncertainty hovering around investments, people are starting to place their bets on stable outlets such as gold. Buying and owning gold bars can be quite a hassle, however, so many people invest in gold-backed ETFs and mutual funds instead.

Indeed, the price increase in many gold-backed funds mirror this overall market sentiment. SPDR Gold Shares even reflects a +31.73% growth through the last year. This can be attributed to intense media coverage on gold prices, so you can hold the media responsible for at least part of that.

Of course, there’s more to any mutual fund or ETF than just the attractive figure it presents. The media is in large part responsible for the continued rise in gold prices. Extensive coverage on gold has certainly directed investors’ attention to this investment possibility. Just like any commodity, the rise in prices is a consequence of the law of supply and demand. Sure enough, demand has been on the rise because of a combination of media coverage and buyers’ pessimism with stocks.

Additionally, investors should be aware that placing their cash in gold-backed mutual funds and ETFs are still not equivalent to actually owning gold bars. For one, the success of gold-backed funds is still largely dependent on the overall stock market’s performance. Nevertheless, gold is a safe outlet for these trying times, and returns from gold-backed funds may be higher than the rest of the market in the short run.

You still make the final decision of whether gold-backed funds are suitable for your investment purposes. Even if gold tends to under perform when the rest of the market is bullish, there is no question that gold has always been a favorite investment of wealthy people with low risk appetites. So, is it too late to invest in gold? Not really. Since gold is such a prized commodity, it will always be of timeless value.

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