It is a common debate among investors – whether buying gold is an investment or a store of money? Well, from the investment perspective gold doesn’t have that much potential for ROI (Return On Investment). Still investors and common people buy gold. Why? Because it is more than an investment – rather it is somewhat equivalent to your contingency fund or insurance. But the question is – how much gold you must own? Because like proper insurance amount, you must convert your asset into gold with right proportion. Many financial advisors suggest – people can buy gold total 10% of his/her asset. According to CASEY RESEACH – you must own 20% of your entire liquid asset. Many people just buy 10%-15% of gold or gold bonds in their portfolio for the sake of diversification, but the safest range of buying is – 20% of your entire liquid asset.
It is a very common question among investors – what is the right time to buy gold? Well, here is a year wise profit margin figure that can help you to understand the situation –
|2000 – $271.50||2001 – $276.50 (1.8% gain)|
|2002 – $347.50 (25.6% gain)||2003 – $416.25 (19.9% gain)|
|2004 – $435.60 (4.6% gain)||2005 – $513.00 (17.8% gain)|
|2006 – $632.00 (23.2% gain)||2007 – $833.75 (31.9% gain)|
|2008 – $869.75 (4.3% gain)||2009 – $1,087.50 (25.0% gain)|
|2010 – $1,421.60 (30.7% gain)||2011 – $1,531.00 (7.7% gain)|
|2012 – $1,657.50 (8.3% gain)|
Information source – CASEY RESEARCH, 2013 Gold Investor’s Guide.
Gold price and profit closely related to inflation, national debt and many other economic and political variables. Financial advisors, fund managers and stock specialists suggest paper gold, derivatives and other gold bonds protect investor’s capital against inflation and dollar hedge.
Last but not the least, during the writing since April 2013, gold future for delivery in august rose 0.6% to $1,256 per ounce (Information Source – Money Morning). Significantly, gold price declines more or less 30% its value in recent 9 months and probably this is the time when you can buy some gold that can give you profit in the next couple of months.
Buy gold in competitive price at Pentagold which will give you good return in future. Give us a call at 022-22402255. Our team will help you for any information you need.