Gold has long been considered the top insurance investment for protecting assets. Not only do investors hold gold investments on paper, but they also often opt to purchase solid gold coins that are government certified just in case something drastic were to happen. It is true that gold has been considered as money since the establishment of the United States, but today the phenomena of wanting to own at least some gold is a global situation. What this means for the gold investor is that volatility in the market may not hurt them so much if they have significant gold holdings for protection. When the market tends to trend downward, gold has tended to trend upward. The recent volatile market has shown exactly that, with current prices sitting around $1500 per ounce give or take $100 or so.
How Gold is Priced
One of the primary reasons anyone would want to invest in gold is the method in which it is priced. The price of gold is set twice daily by the London Bullion Market Administration, or LBMA, based on the leading market indicators. LBMA Gold Price, which was established in 2015, has replaced the London Gold Fix. This stabilizes the process of fixing the Gold Price. Prices are posted at 10:30 AM and 3 PM GMT Monday through Friday, which allows all investors an investment benchmark twice daily during the investment week. Gold is largely the anchor of the precious metal system, with the other PM posts setting according to the price of gold for the most part.
Gold Financial Instruments
There are effectively two methods of holding gold in a portfolio. One is owning gold certificates or having a gold IRA. Gold is not only the most historically dependable of investments, but it is used in multiple industrial applications as well, including smartphones, computers, and solar panels. Gold does not tarnish in any form, and many individuals actually buy solid gold coin sets just in case there is a calamity in the overall market. In today's intense global economy, it is always best to be prepared for any turn of events. This financial insurance is exactly what gold investments are designed to provide in the current structure, and owning gold is indeed a sound investment strategy.
Gradual Price Inclines
While the price of gold has been held to a specified minimum for market stabilization, it has still been inching upward as the market has expanded over the recent past. This could be due to certain outside factors as well, such as the quantitative easing policy implemented by the Federal Reserve Bank over the past decade. The price has seen some fluctuation, but not significant enough to alarm any investors. Regardless of minor movement in the market value of gold, it is still the best method of hedging against inflation when prices of are rising for many products across the board within the U.S. economy.
Always remember that a gold IRA is not limited only to gold holdings, but can include other precious metals such as silver, platinum, and palladium. A comprehensive precious metal strategy is actually the recommended method of holding a distinct "set aside" portfolio for any considerable unseen shift in the market. Being prepared is the key, and the best way to prepare is investing in precious metals in some format, beginning with gold for most established investors.