In a climate of economic uncertainty and with the American dollar continuing to slide against other currencies, raising the specter of inflation, many people have decided to convert their assets into gold in an effort to protect their hard-earned wealth.
In more stable times, many sought gains by investing in the stock market, but it has been falling, too, due to a growing concern over the size of the planned Federal Reserve purchase of Treasury bonds.
Stephen Stanley, chief economist at Pierpont Securities LLC in Stamford, Conn., told Bloomberg that if the central bank buys too much, "I think there's a real chance that rates are going to rise because people are worried about inflation."
Global stocks rose slightly on Oct. 28, lifted by strong corporate earnings, but the ailing American economy is causing the currency to continue to fall. In fact, foreclosure rates have increased in the last quarter, which will likely keep real estate prices depressed and prevent a more vigorous economic recovery, according to RealtyTrac.com.
Against the backdrop of similar volatility, precious metals — such as silver, gold and platinum — continue to offer attractive investment options for those who want to shield their wealth from the ravages of inflation.