Best Investments During an Inflationary Period
Posted on | February 13, 2009 | 1 Comment
In previous articles, we mentioned that inflation is likely to happen in the United States in the very near future. The government has given too much money to banks and lending institutions which will cause a decrease in the value of the US dollar and a subsequent inflationary period. The stock market has been a horrible investment over the past year as the overall market has been down over 40% and many investments have seen a loss of greater than 75%. This is causing many investors to weigh their options on future investments. There are a few options when it comes to investing in an inflationary period, but one investment vehicle seems to ALWAYS outperform.
Gold is the best investment during an inflationary period. It is the one asset group that has stood the test of time. Throughout history, this is the ONLY asset to remain intact. Many market pundits will say that gold is a horrible investment, but look who is talking now. Investing in gold in in 2001 around $260 an ounce would have netted a gain of over 260% if held through today. During that same period, an investment in the overall stock market would have netted a loss of over 31%. The same held true during the inflationary period of the 1970s and early 1980s. Gold was up over 1700% during that period which made many investors a great deal of money. The majority of the gains were seen in 1980 with a meteoric rise from $200 an ounce to over $800 an ounce in less than one year.
Is this possible today? With the actions by the Federal Reserve Bank, it seems quite likely that we will see a strong push higher from gold. A strong push like that of 1980 would increase the current price of gold to over $3700 an ounce. With this knowledge, you may ask, “what is the easiest way to invest in gold?” Buying gold coins is an option and often a fun hobby, but the easiest method is to buy shares of the GLD, the SPDR Gold Trust etf, on the New York Stock Exchange. Other options include the DBP or DBL.
We will offer much more on the opportunities during an inflationary period in the coming months.
Related Articles:
Inflation is Coming…Where Should You Invest? Part I
Inflation is Coming…Where Should You Invest? Part II
The PORTAL Alliance Could Be the Destruction of Our Economy and We Don’t Even Know What It Is
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February 15th, 2009 @ 10:00 am
This article does not reflect what type of investment gold is good for… is this for a short term investment like a CD? or a mid-long term investment like a retirement?