Americans Keep Buying Gold
Americans Keep Buying GoldDespite a huge decline in the price of precious metals, it seems as though Americans are addicted to buying gold. The precious metal is the most popular hard currency that you can buy in a retail situation, with silver lagging behind and platinum hardly in the race at all.
According to a recent report by the U.S. Gold Council, demand for gold in 3Q of 2015 is up over 200%. Some of that demand can be attributed to the heavy advertising that the gold buying industry engages in, and another piece of it is plain uncertainty about the markets.
Still, buying into gold at this point is a risky move, although more and more Americans are trying it every year.
Despite a nearly 10% downward trend in the price of gold over the past 30 days, Americans still can’t get enough of this precious metal. According to the report bullion and bars are the most popular purchases, alongside gold-backed securities and retirement accounts.
The problem with putting your faith in gold is that your money may be worth much less when you actually need it. If you lose your job in a relatively prosperous time, all of the gold that you’re holding won’t be worth much. Then again, if you lose your job due to a huge market trend, that gold price might have spiked as stocks sunk.
I think it’s that fundamental bet that keeps people buying gold even when the market dictates that they really shouldn’t be. Gold’s reputation as an ace in the hole when times get rough keep it in the media and in everyone’s minds. Gold has a reputation as a bulwark against failing economies.
Of course, the problem is that our economy isn’t really failing right now. Compared to the rest of the world the US is actually in pretty good shape. Our dollar is strong and markets are moving upwards. This means that gold investments might be cheaper to get into right now, but you can expect them to ultimately shrink in the near-term.
That doesn’t mean your gold is worthless, it just means it’s one of those commodities that you have to hold onto long-term and only get out of when market conditions are favorable.
Published on Nov 12, 2015By Aaron Phillips