What Makes Physical Gold Bullion Necessary For A Diverse Investment Portfolio

By Sebastian Tenier

Predictions are flying left and right about when and how this economy will right itself and if the bailouts will work. The actual fact of the matter is that nobody really knows what the end results will be. The worst case scenario is that everything fails and countries get pushed even further into debt. You can read as much as you want, but the conclusion you will probably come to is that it is too soon to tell.

While nobody can see what is coming, we can all look at the past for lessons. When you look at the past you see that it glitters like Gold. Gold is the most secure investment you could make, no matter what happens economically.

Now, the above statement may sound a little extreme so many. However, the truth is gold bullion offers a level of protection from economic collapse that no other commodity offers. Some of the soundest advice you can receive is to diversify your investment portfolio. There are four main investments that make up a well diversified portfolio- Stocks, bonds, real estate, and physical gold bullion (coins and bars).

It's pretty clear that the rich and savvy investors are running to gold bullion. Here's a couple reasons why:

1) It's no secret that times of economic recession result in wars between nations and many firmly believe that every fallout bunker should be stocked with plenty of Gold, Guns, and Glacier bottled water.

2) Gold stocks and gold ETFs are manipulated by the very same people who have driven this market into the ground, falling prey to these schemes has cost many their fortunes.

Bear economies cause the rich to run for gold as fast as possible. It's plain to see that these billions and trillions of dollars don't just print themselves out of nothing. Well actually they do, and that's going to have repercussions. To avoid the coming backlash, a good portfolio should have it's largest assets in a secure investment. If it's good enough for the world banks to use, then it's good enough for us.

Now don't forget the importance of owning actual glittering gold. Fake gold comes in many forms like ETF's and gold stocks. While these have their place in the short term investment world, you want something that will stand the test of time. Plan for 20 years in the future when you invest in gold and you will get the correct perspective.

You can't argue that gold has steadily and consistently risen in price for the past 8 years. This trend will continue as the economy continues to decline. Spot gold will be selling for over $1000 per ounce by the end of 2009, and that is less than half of what it could end up on if the 1980 gold boom is any indicator at all. - 23229

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