The Time Is Now For Investing In Gold!
(Newswire.net -- January 15, 2013) Washington, D.C. – Forbes released a new article yesterday that explained what determines and influences the price of gold. Now that 2013 has begun, many people are wondering what this new year will mean in terms of gold investments.
According to the article, investors seem to be looking at investing in precious metals like gold and silver “to help not only from a diversification standpoint but also to assist with total return potential given the record low interest rate environment that fixed income investments find themselves within currently in the U.S.” With the U.S. dollar currently very weak in comparison to the global economy, now is the time to invest.
Prior to the year 1972, when President Nixon removed American currency from the Gold Standard, there was a direct relationship between the U.S. dollar and gold prices. With the Gold Standard each dollar was backed by claims for a specified amount of gold, hence its name. However, when Nixon eradicated the Gold Standard, the U.S. dollar no longer had a direct relationship with gold.
That being said, gold now has an indirect relationship with the American dollar. That means, when the value of a U.S. dollar is high, the value of gold lowers. Likewise, when the value of the U.S. dollar decrease, the value or gold increases. With the American dollar being so low right now, it is widely thought to be a worthwhile investment to invest in gold or other precious metals like silver.
For the year 2013, the upcoming second round of the Fiscal Cliff will largely influence the value of the U.S. dollar and its effects on the price of gold. Decisions related to the Debt Ceiling, spending cuts, and Federal Reserve actions related to interest rates in response to the slow-moving economic recovery will greatly affect the value of the American dollar and its effects on the prices of gold.
In recent years, the U.S. has become weak against other foreign currencies due to the United States' low interest rate environment. There has been an increase in the price of gold since the great market meltdown of 2008, as a result of the low interest rate environment in the U.S. as well as the other factors stated above. As other foreign currencies have weakened, in recent years, in relation to the U.S. dollar, the price of gold has increased due to the relative weakening in conjunction with other market factors.
Kevin Mahn, the contributor to this new Forbes article, says that he views " investments in gold not only as a potential inflation hedge…but also as an equity market volatility hedge.”
If you are interested in learning more about gold, investing in silver and other precious metals, as well as how investing in them could be a benefit given the current state of the economy, please visit our website below for valuable resources and information.
1889 Silver Dollar Value
This is a press release. Press release distribution and press release services by EmailWire.Com: http://www.emailwire.com/us-press-release-distribution.php.