The Future of Gold: Is Gold Bullion a Good Long Term Investment?
"What will be the future of gold?," as we are often asked. Of course no one knows the future and there are many factors that affect the real value or price of gold. But, if one judges by the current activity of gold over the past year or so, it looks like the value of gold is going to just continue to rise.
Basically, there are many positive indicators that show us the price of gold will continue to rise, ultimately making it a sound investment. This means gold coins or bars that a collector studiously accumulates should only improve in value over the years. Actually, it is probably not so much the value of gold increasing as the value of the dollar declining against the value of gold that drives our assumptions.
A recent article pointed out that there have been so many dollars printed that for the US to return to the gold standard would mean that every ounce of gold would cost over 52 thousand printed dollars! This means that 100 years ago it only took $20 to buy an ounce of gold. A few years ago $280 bought an ounce, and these days, well, just take a look at the spot price of gold on our website at gmrgold.com and you will see where gold is.
This clearly demonstrates that the dollar has seriously deteriorated since the gold standard was dropped, but that the value of gold continues to increase.
It is most likely, in our opinion, that gold will continue to improve in value against the dollar provided that more dollars are printed than are needed simply to manipulate the economy, and that those people who collect and hold real gold will have a distinct advantage over those who hold only currency.
Even if one paid top dollar for a proof gold coin 2 or 3 years ago the value of that coin will now be over the total cost of purchase and there is no sign that this will decrease.
Ultimately, the future looks bright and there is good sense in continuing to buy as much gold as one can get one's hands on!
Remember - "take care of your money and your money will take care of you."
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