INVEST IN GOLD NOW Gold has been rising over the past eight years, and last week it hit an 18-month high. Few people realize that that gold in dollars has outperformed the US stock market fourfold over this period, even with the reinvestment of dividends. In simple terms, if you had invested in gold eight years ago, your investment today would be worth four times that of having invested on the stock exchange. That’s a huge difference.

In 1999, one share of the Dow could buy 44-ounces of gold.
Today, it will buy 9.54-ounces.
Richard Russell of The Dow Theory Letters fame believes that it could soon drop to below 5-ounces.

Gold is increasing due to investor’s expectations of rising inflation.
The price of gold is also increasing steadily because of the amount of money that central banks, internationally, are pumping into the system to re-ignite economic growth, and stem the possibility of a global depression.

 

The declining dollar has been one of the main catalysts for gold's rise.
Although the gold price recently reached new highs in dollar terms, it is important to note that the gold price has also been rising in most other major currencies since mid-2007.

It was recently announced that China, who has historically held their reserves in dollars, has doubled its gold reserves to 1054 tonnes in the last few years.

This makes that country the world's fifth-largest holder of gold, just ahead of Switzerland, and among the six nations plus the International Monetary Fund that have reserves of more than 1000 metric tons. You don’t have to be a country to build up your gold reserves. Invest in a Kruger Rand or two. It’s the most successful gold coin ever produced in the world.

Kader Khan
Editor
info@yummie.co.za