How many times have you read lately in the traditional press that, 'Gold is Back!'?
In a way that's understandable since gold appreciated by about 20% this year. Gold started 2002 at about $272.00 per ounce, then shot up to $330.00 per ounce, a 21% gain. Now, gold is trading at about $306.00, a 50% correction. Still, gold has outperformed most paper investments this year. And investor interest hasn't been this keen for the "barbaric metal" in two decades.
Gold seems to have general support at the $300.00 level. What is called 'the resistance point' has been raised from $326.00 to $330.00. So, when the gold market rallies again and breaks $330.00, many analysts think the gold price could run to $350.00, with the next notch up $400.00.
The outlook for gold is still positive for 2002. There's a 'bear market rally' taking place in the US stock markets. So, with the outlook for lower stocks and a slow growth US economy (GDP growth cut in half this year), smart investors are looking for a solid alternative investments like gold.
Sophisticated investors members know gold hasn't been lost, only rediscovered. Clearly, gold is the only 'real money' in the world today. As gold specialist, Bart Kitner observed, 'Gold is a currency unaffiliated with any country. Without a renewed confidence in the US dollar, gold will outperform it and all other currencies for a long time to come.'
So, yes, gold isn't lost after having been around for 4000 years. Yes, gold isthe 'ultimate currency' with no debt burden like the once king US dollar. So what's the best way to own the money that knows no borders? In my view the best and safest way to own gold is with a government guaranteed gold certificate.
Michael Checkan is President with Asset Strategies International, Inc. of Rockville, Maryland, a firm specializing in precious metals, foreign exchange and overseas asset protection. They are also one of the principal developers of the
Perth Mint Certificate Program.
Copyright © 2001
The Investor's Library has reprinted this copyrighted article with the permission of the copyright owner, Asset Strategies International Inc.