Monday, January 26, 2009

Should I invest in Dollar or Gold ..... ???


A competition of investment in gold versus dollars would obviously result in gold winning over without a shadow of a doubt.
A number of reasons actually shall take us through the analysis for gold winning over dollar. A change in the price of gold is actually the change in the valuation of dollar, not gold. The simpler way in which we can put it in is that an ounce of gold can still buy the same quality and quantity of services and goods as it were decades ago. However, the same amount of dollar cannot fetch the same as it did years back.
Thus, the question that arises upfront is whether to invest in "Dollars or Gold?"
An investment in dollar exposes the investor to the manipulated fluctuations in the market which causes abrupt changes. This is again a result of continuous printing of dollars (such occurs in most currencies , however, we considering only U.S here). This is done so as to fund debt like Federal Government debts and also those which are both private and public.
In contrast to dollar , gold carries a permanent consistency which does not alter in terms of purchasing power. The value of dollar relatively decreases with time, in the longer time frame. There was a time when $20 would have bought an ounce of gold which now would go up to $600 to $700.
This interestingly points to the direction where one should put his money. Gold is not dependent on currency. Thus, it can be simply handed over or received.

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