Thinking of Gold?By Randell Tiongson on October 16th, 2009
My earlier blog (Should you start buying US Dollars?) may has spurred a lot of discussion on alternatives to the US Dollars and one of them is Gold.
Gold has been a financial instrument for the longest time, even predating minted money by a mile. Every time there are reversals in the economy and the market, you will always here that gold is a better investment as they really rise in value. Do they? Yes… but by how much? Like any form of investment, you will see good years and bad years but when you look at the long term performance of gold itself, one will really wonder if it’s really a better investment after all.
From the data I gathered, the 30+ growth rate of gold was just about 5% p.a. It doesn’t really look like that great of an investment to a lot of people. But then again, the value of gold doesn’t really collapse especially during financial reversals so it does have its strong points too.
So where should you put your money? Well, that’s a tough question and the answer is always “it depends”. It depends on your financial objective, time frame and risk tolerance.
I would like to readers to check on their perspective – growth or security? More importantly, what is the purpose of your treasure to begin with?
“For where your treasure is, there your heart will be also.”
– Matthew 6:21, NIV