Investors buy gold for one of three reasons: a hedge, a safe haven, or a direct investment. Which of these is the best reason? Research says that gold is the best hedge against a stock market crash.
Hedges are investments that offset losses in another asset class. Many investors buy gold to hedge against the decline of a currency, usually the U.S. dollar. As a currency falls, it creates higher prices in imports and inflation. As a result, gold is a defense against inflation.
For example, the price of gold more than doubled between 2002 and 2007, from $347.20 to $833.75 an ounce. That’s because the dollar’s value (as measured against the euro) fell 40 percent during that same period.
But, knowing when and where to buy your gold is trickier than you think. Many don’t realize they’re overpaying for their gold and they could be getting it for a much cheaper price than they usually pay.
"The Gold Standard" ebook is here to fill that gap and educate investors on the best times to buy gold and where to buy it from. For a limited time, we’re offering it to our special members at a discounted price.