SelectReserve CacheTv Open an Account
SelectReserve CacheTv Live Charts
Request More information on on gold, silver, coin, currency and learn about the value of mint and precious metals. We provide information on silver bullion and buying gold
Get on Board with RRSP & TFSA  - Invest in Physical Gold & Silver through your Cache Metals Account
Cache Metals Store - Browse through our Fabricated Bullion Products As Seen and Heard on AM640 and other Toronto Radio Stations
Click to Subscribe to Cache Metals Newsletter
Win a 1 OZ Gold MAple Leaf from Cache
Cache Metals Delivers the latest in business and metals market news.
 INDEX  >  Gold goes on the investor's podium
   Published: February 20, 2010 By Peter Hodson


| More

Being here, in Vancouver during the Olympics, it was perhaps inevitable that this column would be about gold. We are honoured and excited to be here making cheque presentations to Canadian Athletes Now Fund, a not-for-profit charity that helps directly support elite Canadian athletes in their pursuit of excellence. We have pledged $100,000 for each Canadian gold medal won during these games, which will support future athletes, and have handed out a few cheques already (info can be found at our athletes, investors have certainly been in pursuit of gold over the past decade. In fact, as an investment, gold has been a clear Olympian compared with other assets. In the first decade since the turn of the century, gold has returned 14.8% annually, while U.S. stocks showed a negative return over the same period (S&P down 0.7%). In 2010, after a shaky start, gold has again started to outperform world indexes.

Thus gold has certainly been popular for the last little while, and not just amongst athletes. But gold has been popular for more than the last decade. Back almost to the dawn of recorded human history, gold has been sought after. The Romans, the Incans, the Spanish, the Mayans, many empires made it a priority to acquire gold. Wars have been fought, lives have been lost, fortunes made (and broken), and scams have been perpetuated, all in the pursuit of the precious metal.

Personally, the power of gold was truly brought home to me when I hiked the Chilkoot Trail seven years ago. In the late 1890s, literally tens of thousands risked their lives (in winter, no less, because it was "easier" then) to traverse the Chilkoot carrying a ton of gear, in order to search for gold in the Klondike, after gold nuggets were discovered there.

One night on the trail my small group and I camped in an area that, during the gold rush, housed about 40,000 people. The city is completely gone now, having been dismantled and burned for heat as the gold rush died down.

Lying in my tent in the middle of nowhere somewhere between Alaska and B.C., it occurred to me: The city is gone, the 40,000 prospectors are gone, but ... the gold discovered then is still around.

Another revelation was that the gold rush in the Yukon occurred during a depression and time of extreme unemployment and social unrest.

There were no social assistance programs, government bailouts or TARP programs back them. So, when the world is crumbling around you, and you are perhaps starving and concerned for civilization in general, what do you do?

Well, for many, the answer was to sell everything, buy supplies, head to Alaska in the middle of winter, risk life and limb on a 53-kilometre hike over the mountains, build a boat, and look for gold. Kind of makes today's gold bugs look tame by comparison.

What is it about gold that provides allure to so many? Well, I am no gold expert, but I am surrounded at work by people who know a few things about the topic. They have written extensively on the topic, and I wouldn't try to compete with them. However, there are a few simple reasons investors like gold which are hard for the gold bears to counter.

First, gold is a fairly simple store of value. Whether you like gold or not, you can't argue with the fact that it would be much easier to walk around with US$400,000 worth of gold (one bar) than it would be to walk around with the equivalent amount of almost any other currency.

Second, gold is recognized anywhere worldwide as currency. Its portability and acceptance means it is immune to political changes, country disintegrations and general social upheaval.

Third, gold is clearly recognized as something that is hard to obtain, physically. Global mining production has been declining for 10 years now, and the cost to extract an ounce of gold seems to continually rise.

In addition, gold mining requires huge capital expenditures up front, causes environmental issues, sucks up a huge amount of energy, and is increasingly done in harsh and dangerous environments.

Even the staunchest of gold bears would have to concede that gold is difficult to physically obtain (certainly our athletes would agree with this statement!).

Fourth and most important for investors concerned about currency debasement and inflation is that governments, despite their power, cannot simply create gold. It cannot be printed, created, moved around via bits and bytes on a computer, or otherwise conjured out of thin air. Every other currency can be, and increasing is, simply created out of nothing.

Because gold cannot be printed, many view it as the ultimate currency. Certainly residents of Iceland know this fact, as they watch their country and currency careen towards bankruptcy over the past two years. Greece residents are certainly more aware of this fact these days also.

These points simply cannot be countered by the bears. Gold has a place in the world. Of course its value can fluctuate. But whether you are an athlete or an investor, gold has some attractive properties, and is worth striving for.


- Peter Hodson is chairman and a senior portfolio manager at Sprott Asset Management  

© 2010  Article Source
CALL 1-416-916-6660 and book an appointment with a Cache Metals Precious Metals Market specialists
© 2011 Cache Metals Inc.   |   International Bullion Wholesalers
Tel: 416.916.6660    Toll Free: 1.877.916.6670    Fax: 416.916.6702   [email protected]
ICTAICANN-Accredited Registrars Powered by ActiveTvNetworks     
As with all investments, the price of precious metals changes rapidly, and as such should be considered volatile. Upon entering the metals market, the risk of loss is solely that of the client. Only individuals who are capable of sustaining a capital loss should consider purchasing precious metals. Acquisitions in precious metals which are financed are considered high risk.
Active TV Networks - ATVN & Active TV powered this website. Visit Madcap Media Inc or and atvn for your niche web development needs, including CMS.
gold, silver, coin, currency, value, coins, mint, precious, buy gold, stock price, metals, gold price, gold silver, bullion, maple leaf, gold coins, silver dollar, gold prices, prices gold, gold and silver, gold coin, gold rate, gold bullion, gold live, bullion gold, silver coins, price of gold, silver price, buying gold, live price, gold bar, current price, silver bullion, bullion coins, bullion silver, bullion bars, spot gold, gold bars, gold spot, market price, silver prices, silver coin, sell gold, gold today, krugerrand, gold market, precious metals, metals precious, gold chart, price in gold, silver bars, precious metal, gold coins bullion, gold bullion coins, silver dollars, coin collecting, rare coins, gold rates, gold ounce, gold current, buy silver, silver bullion coins, silver coins bullion, gold value, silver bar, gold stock, gold kitco, silver spot, gold investment, platinum price, selling gold, gold etf, ounce price, gold price today, spot gold price, gold spot price, gold price india, gold price spot, gold trading, gold stocks, current gold price, copper metal, numismatics, troy ounce, gold price ounce, today gold prices, gold price in india, gold dealers, gold investing, gold index, gold price per ounce, gold price gram, krugerrands, gold quotes, gold futures, gold invest, gold charts, gold price chart, live gold prices,live gold price, bullion bar,how to buy gold, gold quote, krugerrand gold, buy gold coins, gold spot prices, spot gold prices, current gold prices, platinum prices, silver spot price, base metals, buy bullion, us gold coins, gold comex, gold price market, current price of gold, price for gold, the price of gold, price of gold today, gold and silver prices, price of gold per ounce, gold funds, gold market price, bullion coin, e bullion, buying silver, buy gold bullion, gold price history, bullion dealers, bullion market, gold bullion buy, gold bullion bar, silver investment, bullion price, silver gold price, gold coin prices, today's gold price, gold price oz, todays gold price, precious gold, iron metals, bullion direct, silver bullion bar, silver bar bullion, gold markets, kitco price, gold coin price, prices of gold, gold and price The History of Metals,Bullion - A better Alternative,Investments,Silver Bullion,Buy Silver Bullion,Bullion, Gold Information,Gold Investments, How To Invest In Gold , Precious Metal Investments, American Dollar, U.S. Economy, Information On American Economy, Investments In Gold And Silver, Investing In Silver, Dollar Devaluation, Devaluation Of The U.S. Dollar, Dollar Investments, Information About Gold, Global Economy, Global Economy History, Gold Bullion Buyers, Gold Bullion Sellers, Investing Information, Investment Kits, Gold Investors, Silver Investments, Silver Prices, Gold Prices, Gold And Silver Prices, Precious Metal Prices, Precious Metal Traiding, Investment Roll Papers, Investment Planning Papers, Precious Metals, Metals Price History, Daily Silver, Daily Gold, Daily Platinum, Register, Bullion Coins, Bullion Dealers, Bullion Investing, Bullion Investing Firms, Bullion Investments, Bullion Sales, Bullion Trading Sites, Buy And Sell Gold Bullion, Buy Bullion, Buy Gold Bullion Now, Buy Gold Bullion Online, Buy Gold Coin Bullion, Buying Gold Bullion, Buy Precious Metals, Current Gold Bullion Prices, Gold And Silver Bullion Coins, Gold And Silver Bullion Dealers, Gold And Silver Bullion Prices, Gold And Silver Coin Bullion, Gold And Silver Coins, Gold and Silver Investments, Gold Bullion Brokers, Gold Bullion Buyers,  Gold Bullion Sellers, Gold Bullion Stocks, Gold Coin Investing, Gold Coin Investments, Gold Info, Gold Information, Gold Investing, Gold Investments Kits, Gold Investments, Gold Investments Online, Gold Investors, Gold Market Prices, Gold Market Quotes, Gold Prices Information, Good Gold Investments, How To Invest In Gold, How To Invest In Silver, Invest In Bullion, Investing In Gold And Silver, Investing In Gold Bullion, Investing In Gold Coins, Investing In Silver, Investing In Silver Bullion, Investing In Silver Bullion Coins, Invest In Gold, Invest In Gold Bullion, Invest In Silver, Online Gold Investing, Investments In Gold, Precious Metal Dealers, Precious Metal Exchange, Precious Metal Investing, Precious Metal Market Quotes, Precious Metal Investments, Purchase Of Gold Bullion, Safe Gold Investments, Silver Bullion Coin, Silver Bullion Coin Investing, Silver Bullion Dealers, Silver Bullion Online, Silver Bullion Quotes, Silver Bullion Sales, Silver Coin Investing,Silver Bullion Dealers, Silver Coin Prices, Silver Bullion Market Information, Silver Bullion Online, Silver Bullion Price Guide, Silver Info, Silver Information, Silver Investment Kits, Silver Investments, Silver Investors, Silver Market Quotes, Silver Market Prices, Trading Gold, Trading Silver, USA Bullion Rates, Gold Bullion, US Gold Bullion, US Gold Bullion Coins, US Silver Bullion Coin, Where To Buy Gold Bullion, Why Invest In Silver Bullion
Cache Metals Inc - Home PageCacheMetals Statements Cache Metals Inc - About the Canadian Bullion Wholesaler Cache Metals Inc - Bullion Information on Gold Silver Platinum Cache Metals Inc - Register for an account today and start saving money Cache Metals Inc - Freqently Asked Questions about Bullions Cache Metals Inc - Contact Page