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Tuesday, August 16, 2011

Why should you buy gold now?

It is not a news anymore that Gold price is breaking new record highs everyday. While researching and reading as part of my "food for thought" habit, I came across this excellent article on internet written after thorough research. I thought this is the stuff I must share with IndianStocksNews.com readers.

As it is rightly said, Every sensible investor should have gold in his portfolio, be it physical or thru GOLD ETF. So I have it. But with increasing financial instability globally is making Gold climb the price charts everyday, I decided to research if I should add more Gold to my portfolio at this point of time or not when Gold is already at it's peak?

I came across one article, published by Dr. Ron Paul who is a Republican member of American Congress from Texas, America. He has explained very beautifully, IN YEAR 2006, why Gold prices would increase in coming years, due to deeds of American government. And why American economy will collapse soon. Mind it, he has written all this in year 2006 when Gold was $600 per ounce. Today Gold price is $1800 per ounce.

Read the article by Dr. Paul Allen here.

My thoughts
After 5 years of this article published in 2006, Gold is at $1800 per ounce. 3 times what it was in 2006 in just 5 years. Mostly due to the reasons stated in above mentioned article.

And now America has lost it's credit rating from AAA to AA+. American economy went in recession, housing sector collapsed. Debt has climbed to mountains and for which America has no money to repay it. What is America going to do to keep the show running? Print more money, that will further devalue the dollar and it will further make gold expensive.

I have decided to put more money into Gold, not to make investment gains but to protect the purchasing power of it. Of course I expect it to give me more returns than fixed deposits too.

What do you think? Feel free to share your opinion using comment form below.

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