Investing In Gold

dddWith the economic road ahead seemingly rough for the U.S., stock investors are now asking, “Is gold a good investment in today’s economy?”

Gold has been known as an ultimate hedge against troubled times. They do not call it the “gold standard” for nothing, with central banks all over the world stockpiling the stuff in order to defend their currencies’ value.

Gold’s upward mobility recently, especially a thirty-one percent gain last 2007 followed another eleven percent spike in 2008’s first month and gold enthusiasts also known as gold bugs and analysts for precious metals alike are watching in wonder with this commodity’s most recent high-wire act.

Most people say that a price correction has been long overdue and is imminent while others maintain saying gold’s next historic run is only getting started.

The question though is, should you be buying gold now even at $900 plus an ounce which are historic highs?

Is it too high yet to buy?

Although it seems like it is counterintuitive, experts claim that it is definitely the right time in putting blings into an investor’s portfolio.

According to CMC Markets chief strategist, Ashraf Laidi, “It is the right time to buy even if gold is at its all-time high and I think one should see into at least a minimum of 10 to 15 percent gold allocation. My own portfolio is at 10 percent and now it is at 55 percent although I got in quite some time now.”

Standard & Poor’s equity metal analyst, Leo Larkin, admits gold is continuing to exceed his personal expectations.

“I’m very surprised at how strong it’s been even if I think it might pull back,” he says. “It is high now but what if it’s getting higher? I firmly believe it will. In the last century, stocks outperformed gold to almost 10 to 1 in terms of investment and there is no disputing the place to be in is in stocks in a long-term perspective.”

A Stealth Bull Market

So why hasn’t a modern-day gold rush occur yet?

Larkin says it has puzzled him too saying, “Considering how well gold has done, it has been something like a stealth bull-market as I don’t get any kind of sense that there is of any kind of fever about it with the public.”

So is gold a good investment in today’s economy? Some say younger investors have just missed the latest gold boom which has occurred last January 1980. There may be a pullback that followed but gold continued making an upward tack. All of a sudden, Granddad’s Krugerrands did not seem so uncool after all.