WNYC, a public, non-profit radio station based in New York City, recently interviewed New Yorkers who are dealing with the economic decline by trading in their money in order to buy gold coins. While the economy continues to fall into decline and money decreases in value, there is a growing number of savvy investors who are now investing in gold.
Andy Gold is a New York filmmaker who was one of the gold enthusiasts interviewed by WNYC. He said, I expect gold to double. At least to double.” His prediction is well supported by economists specializing in precious metal investments. Already, in the last decade, gold prices rose 300%. Time will tell what this decade will bring, but, while the overall economy suffers, things are looking up for the value of gold.
A twenty-nine year old New York University graduate also interviewed by WNYC told the radio station that he didn’t have much to invest, but that he used any surplus money he had saved to buy gold coins from precious metal dealers in Manhattan. He said, “I don’t have a tremendous amount of money to invest, but I’d rather start off as a base owning the physical gold.”
Back in 2009, followers in the trend of gold prices predicted that it would eventually hit $2,000 an ounce. Now that gold continues to appreciate in price, an increasing number of financial experts believe that gold will exceed even that price. It’s currently hovering around $1,300 a troy ounce.
As worries over inflation, the burgeoning European debt crisis, and the falling dollar continue, more people are becoming aware of the investment value of precious metals. Many opt to buy gold coins instead of dollar-based stocks. To many, gold provides the safest hedge against economic uncertainty. Many fear that a US printing press mentality of the monetary system will inevitably lead to a further declining dollar value. Gold, on the other hand, retains an intrinsic value that is far more reliable.
Others believe that rising gold prices are not entirely driven by the current fear of the economy. They argue that, these days, it is simply easier to trade in gold as new financial instruments are more readily available to the general public. Whatever the cause, it cannot be denied that gold has stolen the investment limelight and is likely to continue its steady rise.