Monday, January 26, 2009

Savvy Shopping - Got Gold?

This year you've seen the both the stock market and the housing market collapse and you're wondering if it is even safe to keep your money in T-Bills with the Federal Deficit at stratospheric heights.
But let's face can't keep it all in your mattress.

OK, I gave up giving investment advice long ago but I'm still always interested knowing what works in a bear market.
And so is the Wall Street Journal.

What You Need to Know About Gold

Gold shined in 2008. Could 2009 be as bright?
Of all the major assets -- stocks, corporate bonds, cash and others -- gold was one of last year's few standouts. While so many investments collapsed amid the turmoil, the price of an ounce of gold posted a gain of about 4.3%.

So far this year, the rare metal is up about 0.7%, after a rally Friday put it back in positive territory. And longer-term concerns are emerging that aggressive, untested government policies aimed at righting the flailing economy could ultimately fuel a further rise in gold prices.

So why does gold work for now?

The case for gold is this: The government is pumping trillions of dollars into bailouts and stimulus plans, a purposefully inflationary policy aimed at reversing current deflationary pressures. If inflation results, or if the dollar weakens as the supply of dollars necessarily increases under the stimulus plans, gold is a likely winner because it hedges against inflation and fiat currencies.

But not everyone agrees

The opposing view: "The inflation argument hasn't been seen yet in government data, and once the economy catches gear, the [Federal Reserve] will pull the money back out of the economy," negating any inflationary pressures, says Tom Pawlicki, a precious-metals analyst at MF Global, who says he's "not friendly on gold."

This article lists four investment strategies with both the pros and cons

Pooled Accounts
Exchange Traded Funds
Mining Stocks

I'd like to offer you another option

An investment you can wear.

(yes...less than an "It" bag and it will last another 100 years and more)
Vintage Woven Gold Bracelet in Yellow and Rose Gold $2850

And from today's Financial Times
Strong investor buying on Monday pushed the price of gold above $900 a troy ounce, hitting a 3½-month high in dollar terms and posting all-time highs in euro and sterling, in a stark sign of money seeking refuge from equities and bond markets.
Digg this

1 comment:

Anonymous said...

Belle, how much is 22k going for now per ounce?

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