On September 6, gold prices hit an all-time record of $1,923.70. Soon after, prices dropped until 20 percent of the gold value was lost. As many analysts predicted, the correction was a long time coming. However, recovery seems to be well on its way and the gold quote increased 6.3 percent in October. On November 3, the gold price hit a six-week high and is now trading over $1,750 a troy ounce.
The historical gold quote reveals that the yellow metal has made annual gains for 11 years straight. In 2011, the value has already increased by 22 percent. Since the economic recession began in late 2007, a growing number of investors around the globe have added gold investments to strengthen their financial portfolios. Gold remains a common diversification tool as one geopolitical factor after another creates investor fear. Traditional investment vehicles are still highly unstable.
David A. Rosenberg of Gluskin Sheff & Associates Inc. said, “The fundamentals for gold in terms of being a hedge against the growing lack of integrity in the global monetary system have not changed one iota despite the severe falloff in recent weeks.”
Even after gold prices fell in September, many analysts remained confident that the value of the precious metal would recover and continue to rise to set new records. In September, Deutsche Bank stated, “We view the latest correction in gold as temporary. Gold and silver prices will keep on rising in an environment where concerns towards the global banking system remain, in our view.”
As the gold quote has indeed made a strong recovery, investors are once again attracted to diversifying with the commodity. Gold investment vehicles include gold derivatives, certificates, and exchange-traded funds, to name a few.
There are a growing number of investors who are interested in owning the metal directly. As a result, sales of gold bullion coins and bars are on the rise. Coins produced by the United States Mint such as gold American Eagles or gold American Buffalos provide valuable investments. Investors interested in a coin that contains a high percentage of pure gold may be drawn to 24-karat Canadian Maple Leaf coins. Bullion bars are another option and provide the most straightforward way to purchase a gold investment. Bullion bars may be purchased in different sizes and purities. Purchasing from a reputable precious metals dealer ensures that each bullion coin or bar has been certified for its weight, content and purity.