1st American Reserve Blog

A survey by The World Gold Council of 18,000 worldwide market participants on their beliefs about gold found that more than half of those surveyed in the U.S., India, Germany, and China trust the yellow metal more than cash currencies. And 67% of the participants agreed, “gold is a good safeguard against inflation and currency fluctuations.” It was also questioned by researchers, “what motivated an investor’s decision to buy gold.” The leading motivation (44%) was to manage risk via diversification by shifting money away from more volatile investments into gold, which they believed to be more stable and is a tangible asset. The second most-cited reason (31%) was due to “the recommendation of a financial advisor or a friend,” while the third largest reason was that people bought gold because they believe the price was low or beginning an upward trend. Not surprisingly, nearly two-thirds of those who have previously invested in gold (64%) would purchase it again in the future. 1st American Reserve’s numismatic expert, Dr. Mike Fuljenz, explains that when confidence is high in the precious metals industry it can create a bull market that is, “usually accompanied by more advertisements by major coin dealers for bullion coins and more customers responding, which many times lead (usually within 6-24 months) to a rare coin bull market.”