The news tells us the dollar is strong when compared to other currencies. American’s however, would tend to disagree with this assessment. Anyone who grocery shops or fills their car with gasoline every week will tell a different tale. The dollar simply does not buy what it used to. Yet, there is another real alternative currency that not only builds wealth, but insulates against the world’s economic woes, gold bullion.
The ancient Romans and Greeks knew the secret of gold, and so did the people who lived through the Great Depression. Gold protects and changes lives. Prices are going up, yet there is no better protection against inflation than gold. The metal is durable and can be bought as bars or bullion coins. Gold is highly liquid so if dollars are needed quickly gold easily obliges, and it can be sold or bought virtually anywhere in the world.
Gold has not soared to the magical $2000 per ounce as predicted. Yet, gold trades at a high spot currently over $1600 per ounce. The EU Central Bank has been filling European economies with massive amounts of Euros, causing the Euro to weaken and the dollar to strengthen. The strong dollar has prevented gold from setting records. On the other hand, the continued debt mess in Europe and its uncertainty has served to keep the gold spot high.
Spain and Great Britain are in recession, and even powerhouse Germany might dip into recession. Greece might still be forced to leave the EU to save itself, and Spain might need to be bailed out. These problems are going to linger on for the foreseeable future. This means the current gold rush is far from over. Some investors are heading to the dollar for safe haven. Flat currencies are not a sound way to protect assets. Gold is still the best hedge going and if you invest with a reputable company, such as Regal Assets, your money will be secured.
If the jobs market in the United States stays gloomy this will help keep gold high. In addition, it is wise to keep an eye on China. Their economy is growing, but there are signs of cracks, and gold prices could be affected. If you thought the gold rush was nearing the end, it is not.