In an uncertain economy, stocks and other paper investments are not the good investments to take. What we need to invest in are real goods, especially “crisis commodities” – ones that increases its value during negative economic, political, environmental, or monetary conditions – such as gold.
Weakness in the U.S. dollar, budget deficits and stock and bond market turmoil may cause your other investments to go down but these events make gold prices
go up. During inflation, the price of gold goes up too – making it a profitable and stable investment.
Even a big institution, the Bank of America Merrill Lynch, has a positive outlook on gold price. It has raised its forecasts for gold spot for this year by 5.3% to $1,498 a troy ounce from $1,423/oz. In 2012, they increased their forecast on spot gold at $1,550/oz from $1,500.