Why Own Gold: Determining Factors

For 5,000 years gold has beguiled investors with its beauty and durability. The precious metal has also played an important role in wealth protection, shielding investors from volatility in stocks, bonds and other financial markets. Today, gold's role as a shield and a hedge against inflation has never been more evident, as the world's governments buy the precious metal in record amounts and the growing middle classes of India and China come on line to comprise what may potentially be the largest gold bull market in history.

This is why many experts believe . . .

. . . Gold Could Climb to $2,400 an Ounce and Beyond!

It Starts with Debt and Inflation

The past decade has not been a model of fiscal prudence. Too many people took out too much debt. To combat the growing credit crisis, the U.S. Federal Reserve printed billions of dollars in cash, setting the stage for possibly catastrophic inflation. In response, investors around the world bought gold, recognizing that its essential value, durability and aesthetic qualities makes it one of the best hedges against inflation.

As a result, global demand for gold climbed to 4,067.1 tons in 2011, or approximately U.S. $205.5 billion - the first time that global demand has exceeded U.S. $200 billion mark and the highest tonnage level in more than a decade, according to the World Gold Council's annual report, "Gold Demand Trends."

Skyrocketing Demand and the China Factor

Debt is not the only factor driving the rising demand for gold. In 2012, China is poised to surpass India as the world's largest gold consumer, with demand projected to climb 20%.

Both countries have strong cultural, as well as economic, reasons for a heightened interest in gold. In India, gold jewelry is a traditional sign of status and prosperity. In China, gold is viewed by a rising middle class as a stable asset that can be counted on in good times and bad.

Both countries are home to a huge and growing middle class, which may be why China and India accounted for 55% of global jewelry demand and 49% of global demand generally for gold in 2011. In dozens of other emerging nations around the world, the trend towards gold is also strong. As the developing world's burgeoning middle class flexes its economic muscle, we may only be seeing the start of a long-term worldwide gold bull market.

Central Banks Go All In

But it's not just the world's consumers who share a love of gold.

In 2011, the world's central banks purchased some 439 tons of gold, a 470% increase from the year before and the highest figure since 1964. China, India, Europe and the United States led the trend, but so too did Russia, Mexico, Thailand, South Korea, Bolivia, Venezuela, Turkey, Kazakhstan and Tajikistan. In all nations, gold is seen as a stabilizing force and a safe way to diversify away from shaky reserve currencies and ongoing debt crises. In a recent survey of central bank managers, more than 70 percent said they were likely to remain net buyers of gold given the level of uncertainty about sovereign debt.

Shrinking Supply

Demand may be growing, but supply is not. Gold mine production was up only 4% in 2011 while recycling of gold was down 2%. Meanwhile, sales of national gold supplies have all but dried up, with only a mere 5 ton sale reported by Germany in 2011. Yet in the same time period, the average price of gold rose 28%! You don't have to be an economist to know when rising demand meets shrinking supply, there's only one way for prices to go - UP!

Easy to Buy and Easy to Sell

At thousands of locations around the globe, gold coins are as easy to buy as they are to sell. Today gold can be purchased in the form of paper like an ETF or in its physical form such as coins, bars, and jewelry. In fact, contrary to popular belief, gold can be more liquid than stocks or even bonds. For more information, call 1-800-965-0580 to speak with one of our experienced advisors.

The Investment That's Never Been Worth Zero

Throughout history, gold has a one-of-a-kind track record - it's never been worth zero, at any time, in any economy. The intrinsic value of gold is easy to maintain and will never be lost even if the paper currency loses its value. It's that kind of certainty in this uncertain economy that has so much money, globally, chasing a fixed supply of gold.

Why Own Gold?

Demand: The demand for gold is always high. It can survive decades and generations without any concern about its future desirability.

Protection: Owning gold as an investment can protect you from a loss in the value of currencies or inflation. This precious metal also helps you to safeguard wealth over longer periods of time.

Diversification: Gold helps you to add variety to your investment portfolio.

Liquidity: Gold is easy to transport, convenient to hide , and easy to buy or sell.