Scott Carter: Hi! I am Scott Carter with Goldline. Today we are talking about why it makes sense to own gold?
Well, may people are buying gold simply because the time is worth. We are facing problems the world hasn't seen since the great depression, on President and the government spending, sovereign debt issues and record unemployment. People are concerned and it's impacting their portfolio decisions. There are a lot of positives reasons to own gold, true in any economy, even more so in a volatile one. Many of our clients are concerned about their buying power and the value as a dollar. Gold is often referred to as a safe heaven asset that has intrinsic value. You see, gold is a potential hedge against inflation that may offer protection against a weakening dollar. In the 1920s, $20 either in the form of a gold coin or a printed bill bought a fine men suit. Since then, trillions of paper dollars have been printed by the government, that's why a $20 gold coin today still buys you a fine tailored man suit, but the $20 bill, won't even pay for the alterations. Having a mix of assets can help diversify your risk, that's why adding assets such as gold is a commonsense diversification strategy. This is especially important in today's uncertain economic climate. Over the past decade, gold prices are up over 300%. And while past performance can't guarantee future results, there are some financial analysts who believe gold prices may reach new record heights. And for many people, there is a certain amount of pride in owning gold. There is a good feeling that comes when your gold arrives at your door. You can take it out of the box, know the history of the coins and hold the value of the asset right in your hand. You can own something that is not merely a piece of paper. As you can see, there are many reasons to consider gold, but I recommend you do your homework to see if owning gold is right for you.