Given the current state of the economy, few people seem very interested in investing in the stock market these days. Many people have begun turning to alternative investments as a means of making money that is much more stable and secure than the current markets are.
For most of the 1970s, Wall Street simply ignored gold and silver, pretending that the metals weren’t out there, or simply having an attitude of disregard towards those who invested in them. Once gold soared past the $650 per ounce price point however, Wall Street actually started paying attention. They waited too long to buy, purchased the gold at high prices and held on to it for far too long, causing them to lose money when they sold it low.
Wall Street has every right to be scared of gold because inflation generally hurts the market and their investments. However, being that gold prices rise with inflation, and while Wall Street will be reeling with the decline of the dollar, gold only continues to increase in value. It’s no wonder that they’re scared, because they’re on their losing commissions by those looking to gold as an alternative investment source. Generally, gold rises when stocks or the economy is falling, which is a main reason that Wall Street investors don’t think much of the metal. In reality, it seems that since Wall Street brokers don’t have their hand in the gold investment grab bag and aren’t earnings fat commissions and bonuses from sales, this may be what has them really worried.
The majority of the young brokers on Wall Street spent years learning everything that there is to know about the stock market, including getting special licenses and training on conventional investing. Gold is not considered conventional investing, and many of the hotshot brokers don’t have the experience to know that it is a great asset so that they can sell it to their investors. There is a certain ‘group think’ mentality on Wall Street, and entire rooms full of young college graduates who make millions of dollars each year off of stock commissions alone and this group think doesn’t include gold.
If a broker were to suggest a client to sell stocks and invest in gold bullion, it would mean less money in their pocket, which is not what they’re going for. There aren’t any major firms on Wall Street that sell bullion, so telling a client to invest in it would be like telling a customer at your gas station that the one across the street sells their gas for cheaper. Brokers don’t like giving away business and income which is why Wall Street avoids precious metals and especially gold at all costs. Maybe that’s a good enough reason you should invest in gold.
Alan LeStourgeon runs a website about Gold Coins where you can find lots of articles and information on buying and investing in coins and gold bullion.
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