4 Reasons Investing In Gold In 2013 Is Still A Good Idea

4 Reasons Investing In Gold In 2013 Is Still A Good Idea 

The last few years have without a doubt been great for gold. But here recently gold has started to have a somewhat lackluster performance. That has many investors wondering if gold has any real staying power. Some say this recent lackluster performance is temporary and gold will eventually rise to even higher levels than it was previously. 

Others believe that gold miraculous run is now over. Below I am going to share with you 4 reasons gold is still a viable investment option and why you should make it a big part of your 2013 investment strategy. 

Central Banks Are Still Printing More Money 

Every since 2008-2009 central banks all over the world have been printing more and more money in an effort to help get the worldâ economies back on track. This is known as quantitative easing and it has been done with reckless abandon. And till this day no one really knows how effective this approach has been. 

What we do know however is that there has been a marked increase in the money supply. And the more money that is in circulation the less value it has. As a result investors look for assets that can help them preserve their wealth. Gold is one of those assets. 

The Financial System Is Still Unstable 

Yes things have gotten better. But there is still a lot of uncertainty surrounding the financial system. Since 2008 many investors have wondered whether or not the financial system could survive another crises. This type of uncertainty makes gold a very smart investment. This is because the value of gold is not dependent or contingent upon a counter party. 

For example, any debt that the government has gets its value from the solvency of the government that is actually backing that debt. Goldâ value on the other hand remains untouched regardless of what's going on in the government. 

It Has A Strong History 

Gold has been known as a hedge against inflation and a store of value for a very long time. It has been used for thousands of years as a medium of exchange. Over the years fiat currency, or currency that derives its value from government regulation or law, has come and gone. Gold on the other hand has persevered. It has persevered for many years and it will continue to do so for many years to come. 

Central Banks Are Increasing Their Holdings 

I think we are all very familiar with the saying actions speak louder than words. And if you pay close attention to the central banks, you will notice that they are steadily increasing their own holdings of gold. This is because they understand the value that it has. So watch what the big banks do and not what they say. 

They say one thing in an effort to get people to believe in the value of fiat currency. But they do another thing because they know that value is very short lived. Always follow the smart money. If you see the big bangs investing in something, itâ € ™ s probably a smart move for you as well.