Just when you saw hope for solving the European debt crisis, Greece’s PM throws a wrench into the “bail out” plan. European countries who have been working toward a solution are justifiably incensed. The fact that Greece has the whole world on “edge” is disconcerting. Greece is the tip of the iceberg and the bigger problem in Europe is defined as PIGS, which are Portugal, Italy, Greece and Spain. These countries and the US are dealing with debt problems due to slow growth and an aging population. The markets also climb a “Wall of Worry” which drives down stock prices and fuels the volatility that traders love because they make more money.
What does this mean for the average investor, who is looking for some security and a way to protect their wealth? Unless you have nerves of steel or are adept at trading the buy low, sell high strategy successfully, you may want to look for a more secure investment or at least some insurance against financial meltdown.
Historically, Gold has always been a “safe-haven” investment that has passed the test through many major crises. The continual rise in gold prices is an indicator of sentiment about current economic events. Also, people in both China and India purchase gold as part of their savings strategy, which drives demand and the price of gold higher. Both China and India have experienced rapid growth which put money into the pockets of people who purchase gold. Demand drives the price up and fear supports that higher price.
Gold bullion coins are an easy way to protect some of your wealth in uncertain economic times. They are easy to purchase and come in a variety of sizes and values. As with all investments, purchase wisely and know what you are buying.