Gold is still the standard

Craig Hall, The Business Times: 

Investment in gold and other precious metals is still very active,” say Teresa Mays, owner of Hedge Company in Grand Junction, “But owners should expect a bumpy ride as the world markets remain unsettled.” Mays points to a report she received six months ago stating that gold owners should expect daily swings of fifty dollars to one hundred dollars per day in the market. “And it looks like that time is here.” adds Mays.

Teresa Mays

While gold is considered a safe haven in difficult economies, this economy is proving to be very confusing. Mays points to the abundance of information available to investors of every size in today’s world, along with a seemingly endless number of news reports about gold and the constant stream of hotel buyers who are looking to buy precious metals as ways that an investor can be overwhelmed. “I receive calls every day from people looking to sell their gold or silver jewelry, so it is a very real part of the market and indeed an indicator of how tough times are for some in this economy,” says Mays, who adds that her business does not buy jewelry, “But for most precious metal investors, keeping an eye on the dollar and whether it is up or down is generally the best indicator.”

In today’s world wide economy, there are myriad factors that are driving prices in the precious metal, commodity arena. And companies like Mays’ react to those factors now on a daily basis. But that does not change the fact that investors should use part of their portfolio to purchase them. “Just a few years ago many investors believed it prudent to keep ten percent of their portfolio in precious metals, now my clients are moving that number to fifteen or twenty percent,” says Mays.

For the future, Mays sees a fairly volatile, but active market, with other metals such as palladium becoming more attractive. Also, Mays is seeing a trend toward more bullion being purchased along with older United States coins and foreign coins in the mix. “Individual investors are very savvy in this market, and owning coins that may be exempt from executive orders or government regulations is something investors are indeed thinking about,” added Mays.