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Will I strike Gold with Gold?

 All terrible puns aside, since the dawn of time (cue melodramatic music), people have been enamored with the beauty of a certain tannish looking metal.  In fact, this particular metal gives its color its name.  Thats right, we’re talking about gold (although if you had guessed silver, you get points for trying and lose points since I said tannish).  All throughout human history there have been mad rushes everytime gold is disovered somewhere.  The new world, California, hell even Alaska.  The point being it has been a valuable commodity for a long, long time.

Even right now, whenever there is a hint of financial instability, people flock to gold because it has always been a hedge on inflation and currency crashes.  As most of you know in the past I have liked gold, but been skeptical of how fast it has increased in value.  Well, I am just going to say it now; I give up, I don’t think its going to fall.

That being said, there are pros and cons to investing in Gold.  Lets start with some of the pros.

Pros of Investing In Gold
-US government spending is out of control and the dollar is likely to be weaker and weaker as we get further and further into debt.
-Inflation has slowed down but is likely to increase going forward.
-Gold will always be worth something, unlike many of the “intangible” things we invest in.
-It has industrial uses

Now a few of the cons:
-It does not ‘grow’ in value and it cannot create wealth, like investing in companies can.
-It maintains purchasing power, but does not grow it.
-Its hard to predict prices so it is not good for “playing the market”

The bottom line:
Gold is just like anything else, it is good in moderation.  It should be part of a balanced portfolio and if you do not own any at all, you should. There are local places you can buy gold in your town but there are also online places where you can invest in gold.

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