Gold Made Simple pose the question-is gold bullion an attractive long term investment?
May 25, 2010 (PRLEAP.COM) Business NewsAs the price of gold begins to rise after its recent dip, Gold Made Simple are posing the question is buying gold bullion as a long term investment as attractive as it appears? Historically gold performs well in a crisis and following the recent global economic and politically events the world still remains at crisis point.
The importance of gold bullion today is significant as it appears to be playing an important role in the global economy. The recent recession and credit crunch was the best thing that could have happened to gold bullion. Looking back the trigger point appeared to be when the interest rates in the USA began to rise and homeowners defaulted on mortgages. The financial consequences of these events impacted the world economies. Central Banks lost confidence in paper currencies and as sovereign debt began to mount as investing in gold as a safe haven for assets became the investment of choice in both the commercial and private sectors.
As time moves on the economic situation appears to have changed little. The Eurozone nations are in turmoil. Spain, Portugal and especially Greece appear to be plagued by ongoing Sovereign debt. Investors have raised concerns over the $1 trillion bailout package the European Union have offered Greece and as a result the value of the Euro is in jeopardy. Investors and Central Banks alike are turning to gold bullion as an alternative means of investing. Analyst Adrian Ash commented "there is a genuine panic about the Sovereign risk in the Eurozone which means gold will continue to find a strong bid".
In such a volatile market it is only natural to worry where to invest assets. Forecasters predict that the current economic problems will have a long term effect and predict the price of gold bullion could possibly double in the next five to ten years. Analyst John Marsh makes sense when he says "we're looking at something that doesn't have a lot pushing it down but a lot pushing it up". The fact that gold has stood the test of time and it is still around as a valuable asset surely speaks volumes that investing in gold bullion now as a long term investment makes perfect financial sense.