There are two basic gold bullion investment options, short and long term. Short term investment has provided excellent returns in the last decade. A gold bullion investment in May of 2005 would have gone up fifty percent in value by May of 2006. Likewise the purchase of gold bullion in August or early September of 2007 would have realized a roughly fifty percent profit if sold in March or April of 2008. A gold bullion investment in November of last year could be worth nearly forty percent more in US dollars today.
The alternative for someone who does not have the time to watch the gold market closely is long term gold bullion investment. Gold was selling for $400 an ounce in 2004 and today is around $1,100 an ounce after briefly passing $1,200. In just five years gold has nearly tripled in value during which time stocks fell, housing prices dropped, and unemployment has continued to plague the USA.
Gold could be an inflation hedge as the dollar slides. While an investor may profit considerably from buying and selling gold quickly, long term purchase and holding of gold bullion can be protection against the steady shrinkage of hard earned assets from inflation and insurance against the possibility of a global financial meltdown.
Whether investing for short term profits or for long term security, gold bullion investment works. Whether one has the ability and inclination to monitor the gold market or just wants part of their assets to be in a safe haven, gold has typically proven to be a safe and profitable means of investment.
