So why buy gold?
Well as an investor there are typically three primary reasons to buy gold: a hedge, a safe haven, or a direct investment. Many debate the best reason, however; research shows the true strength being in a hedge against the stock market crashing or a currency such as the US dollar losing value.
A hedge is an investment that offsets another asset class and with gold the hedge is against stocks and currencies. A great example is between the years 2002-2007, gold went from $350 to $834 an ounce; mainly because the dollar’s value, as measured vs the euro, fell roughly 40% in that time period. With a stock market crash many investors sell out of stocks and buy into gold. This normally spikes the price of gold temporarily until the panic in the stock market ends.
Keeping gold as a safe haven is another of the primary reasons to be investing in gold. This was evident during the 2008 financial crisis then again during the Eurozone crisis. Even political events such as Obamacare and the Dodd-Frank Wall Street Reform Act saw investors go heavy into gold and other precious metals. The largest reason for gold being treated as a safe haven is a major US economic collapse, as evident from the price doubling from $869 in 2008 to $1,895 in Sept of 2011.
Many investors also put money in gold as a direct investment to sell when the gold price increases. Not only is gold a finite resource but it has tremendous industrial application and is held by many governments around the world.
The reality is when compared to other investment vehicles such as stocks, real estate and the new craze of crypto-currencies, gold and other precious metals typically prove to be the most stable and safe investment of your money. While the potential gains compared to those other vehicles may not be as large, by hedging your bet with having a decent percentage of your portfolio tied up in gold you can take advantage of other investments bull runs and then see nice gains from gold if those vehicles turn bear.
So where can you buy gold?
We at Endeavor Metals, located in West Palm Beach, FL offer customers the ability to both purchase any of their metals direct from our website to have shipped to your home or a depository, or can alternatively come to our office in person to make the transaction.
Many local Florida residents in the West Palm Beach area prefer to buy their gold in person. We encourage any people who want to buy in person to call us first and ensure we have the particular coin or bar you want to purchase on hand, if not we have to process your order and have it delivered to our office for direct pick up.
If you’re new to the precious metals market we encourage you to call us, we can help give you a good understanding how the various precious metals investments work, whether you want to buy a 10oz bar of pure gold or are interested in diversifying your IRA we can help formulate a safe and effective investment strategy for you.