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Should You Invest in Gold?

This is a guest post by freelancer Todd Reynolds on behalf of BullionVault.

These days, because many of the largest and most influential economies in the world are experiencing a good bit of turmoil, many people are looking for new forms of investment. Essentially, these people are being scared away from the ordinary stock exchange and looking for alternative ways to invest their money for both preservation and gain. This leads many people to end up investing in gold, which has become a very popular commodity for financial trades. So, should you too invest in gold? Well, that depends on a number of other basic questions that you should ask yourself. Here’s a little help to get you started.

Do You Know How?

If you have no experience investing in gold bullion, you may need to look into the easiest way to go about doing so before you actually make a trade. Gold bullion is not traded in the ordinary stock market. Instead, you will need to go to a gold investment website like, where you will find everything that you need to make safe, secure, and quick trades. At these websites, the price of gold is updated exactly and regularly, and you can purchase any amount you please, at any time. Once you own gold bullion you are free to store it in secure vaults, withdraw it physically, or sell it at any point. Ultimately, this makes for a very convenient sort of investment.

Has Gold Performed As Expected?

As with any investment, before you purchase gold it is a good idea to study the history of its performance. Most essentially, you should determine whether or not gold has performed as strongly as expected in recent years and months. For gold right now, this is a tricky question. Generally speaking, gold performs well when influential world currencies like the dollar and euro struggle, and because of this the price of gold was expected to rise to $2,000 USD per ounce by the end of 2012. However, due to the unexpected strengthening of the dollar over the course of 2012, it looks as if gold will not quite reach this projection. Still, it is worth noting that the price of gold has risen consistently for ten consecutive years, meaning that it is generally a stable investment.

Is The Outlook Clear?

Finally, after examining the history of gold bullion, your last step in determining whether or not gold is a worthy investment is deciding whether or not the outlook is clear. Again, this is a tricky question with regard to gold. Because the price of gold is not tied to any single economic system, it can be somewhat unpredictable. However, as mentioned previously, it is a fact that the price of gold has steadily risen for each of the last ten years. This seems to indicate that while gold may not experience any lucrative gains, it is unlikely to drop in value in the coming year. Some projections even see gold rising as high as $2,400 USD by the midpoint of 2013, which would be a very strong gain.


  1. Checked out that website…. cost 2.5% to withdrawl your physical gold and then another 5% if you are taking out less than 400oz (roughly $680,000 at $1700/oz). I don't know about you, but I don't have $680,000… You would be much better off doing to a local coin store and purchasing golden eagles and storing them yourself in a safe at home or a bank deposit box.

  2. You cannot invest in gold. Gold does not grow in value. It does not pay you a return. If you bought gold 1000 years ago and sold it today, you would be able to buy the same value of stuff with it today – no more, no less. It only changes in value over the long term due to inflation. It changes over the short term due to fear and greed, and both are difficult to predict and at least in Vegas you get drinks with your gambling.

    Gold is great if you want to bury wealth in mason jars for your great grandchildren to find, or you want a piece of jewelry. If you want return, buy stocks, bonds, or real estate. If you want protection from inflation during your lifetime, buy stocks or real estate.

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