Gold Trends: Still the Ultimate Asset

Gold Trends: Still the Ultimate Asset

Gold Trends: Still the Ultimate Asset

Gold is Down-But Not Out!

There’s no other way to say it: it was a tough year for gold prices on international markets in 2013.  Gold futures prices lost 28% in 2013, the first yearly loss since 2000 and the largest annual loss for gold futures since at least 1984, according to FactSet data tracking the most active contracts.

Historically Strong Gold Trends

But here’s the silver-or should I say, gold?-lining to this dark cloud of bad economic news: historically speaking, gold is as solid of an investment as there can be. This is why, despite any gloomy short term forecasts, it retains its allure for miners and investors alike.  Many investors around the world still see gold as “the ultimate asset” – an important and secure part of their investment portfolio. Gold has kept up with inflation during the past 200 years, a track record that is far more significant than any six to twelve month forecast.

Why keep prospecting?

The reasons that gold remains an irresistible and historically relevant investment commodity are many. Here are a few:

  • Gold can be purchased in many forms including modern gold bullion coins and bars. Investors can make purchases in virtually any amount, ranging from a fraction of an ounce upward.
  • The weight and purity of gold coins are precisely controlled and standardized by internationally-recognized refiners and official government mints, allowing investors to buy with confidence and sell with ease.
  • People hold gold for safety, security, and privacy.  When you buy the right gold, it’s easy to buy, sell, store and transport in a crisis.
  • Gold is a long-term storehouse of value. Historically, gold acts as a reliable “store of value” because it fulfills all the functions of money.
  • Gold is portable and divisible, gold is easy to store in an emergency and far more reliable than paper money in a crisis.
  • Gold is indestructible, relatively scarce, and cannot be “manufactured.” Gold’s value cannot be inflated away like paper currency.
  • Gold bullion and gold coins are highly liquid. Gold is recognizable and acceptable as a form of payment which makes it easy to buy, sell or trade worldwide.

Big Dreams, Long Term Rewards

We, as miners, are a hearty breed-prone to big dreams, and not afraid of a little adversity now and then. So while the economic experts may be emphasizing a little doom and gloom about the current state of gold’s value on the world market, my take is: when did a little bad news ever keep anyone from getting out there and mining for gold?

History shows it’s been worth the effort.

The Gold Lab
About The Author
I’m Dave Chiara, and it was only a few years ago that I picked up a gold pan and couldn’t put it down. I happily spent my weekends dredging, processing, panning, and sluicing. I can’t imagine a better way to spend your free time – out in nature with friends and family, and coming home with real gold!

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