Is Gold a Good Investment as of 7-7-2011?

We’ve celebrated our Day of Independence and it’s now July 7th, 2011. Is a gold a good investment in today’s precious metals market conditions or is platinum, palladium or silver as an investment a better option? Gold fell by $52 an ounce a couple of weeks ago and that was a very big drop for a precious metal that has a recent history of steady upward movement. Of course this worried many investors as to the long-term outlook of gold in relation to both the dollar and other precious metals such as silver. So what it the current long-term outlook..is gold still a good investment today?

Long-Term Outlook for Gold Remains Bullish

Over the long-term the trend for gold remains bullish and intact meaning that precious metals investors should not abandon or liquidate their positions in gold. Gold is priced in U.S. dollars and recent strength in the dollar has pushed the price of gold lower since it is typical that gold and the dollar move in opposite directions.

Stress in one market causes losses in others. There was news that the International Energy Agency would release more crude-oil supplies into the market to offset lost Libyan production brought down by oil futures. Traders will be in a frenzy to raise capital through sales and since gold was trading near all-time highs it was a highly-available source of funds.

In this situation buyers of gold look to see buying opportunities for the yellow metal when it dips to attractive levels to take positions. Gold seasonally will struggle in summer months and strengthen by August according to John Person, president of National Futures. This is a short-term break from the mostly vertical movement the metal has shown us and presents an excellent buying opportunity to take a position in gold as an investment at the current moment. Take your position in gold while it is still at attractive levels.

» Contact Cornerstone Asset Metals today to learn more about buying gold as an investment.

Past performance is not an indication of future potential values.