Now is the time to invest in gold, as gold demand for the first quarter of the year was the strongest ever according to Frank Holmes. In his analysis, gold appreciates at its fastest pace in 30 years. Demand was up 21% according to a World Gold Council report, meanwhile, demand for bars and coins was up 55% a year.
Uncertainty over the world economy along with Central Bank Policy continues to make gold attractive as an investment. With many countries currently in a process of devaluing their currencies, investors are seeking better and more reliable stores of value and gold is happy to oblige.
Wayne Allyn Root a businessman, politician, and author, at the money show last week in Las Vegas, said: “owing gold is not a luxury but a necessity.” During his presentation, one of the most interesting data points was just how much purchasing power the dollar has lost since 1913 the year Federal Reserve was created. A million dollars then is worth about $25000 today. One million dollars in gold in 1913 would be now worth more than $60 million. The smart money is flowing into gold right now.
Frank Holmes is Chief Executive Officer and Chief Investment Officer at US Global Investors Inc. is a registered investment adviser managing approximately $4.8 billion.