![\"Gold](\"http:\/\/www.itmtrading.com\/blog\/wp-content\/uploads\/2013\/08\/Gold-going-up-Q.jpg\")
<\/a>Gold Prices Have Steadily Increased Over Time In The U.S. Since 1971<\/p><\/div>ar in the gold market is, \u00e2\u20ac\u0153Will gold prices rise?\u00e2\u20ac\u009d The answer to this question reminds me of one of my favorite commercials on TV right now. Perhaps you have seen it:<\/p>\n Picture in your mind a man in a suit sitting at a child sized table surrounded by second graders. He asks the question, \u00e2\u20ac\u0153If two friends invited you over to swim, and one had a big pool and one had a small pool, which pool would you want to swim in?\u00e2\u20ac\u009d One 6 year old asks with excitement and sincerity, \u00e2\u20ac\u0153Does the big pool have a robot that can turn into a samurai and karate chop the water like a ninja warrior?\u00e2\u20ac\u009d The man asking the questions replies with feigned confusion. \u00e2\u20ac\u0153Why would it not?\u00e2\u20ac\u009d<\/p>\n Well, \u00e2\u20ac\u0153Why would it not?\u00e2\u20ac\u009d is the answer to the question, \u00e2\u20ac\u0153Will gold prices rise?\u00e2\u20ac\u009d Let me explain. The question \u00e2\u20ac\u0153Will gold prices rise?\u00e2\u20ac\u009d is incomplete. The more complete question would be, \u00e2\u20ac\u0153Will gold prices rise against ______\u00e2\u20ac\u009d and insert the asset of your choice in the blank. The answer, however, \u00e2\u20ac\u0153Why would it not?\u00e2\u20ac\u009d is still the only correct answer. I\u00e2\u20ac\u2122ll explain further. Gold is a constant, and other asset classes are the variables. One ounce of gold will remain one ounce of gold, and over time, that ounce of gold maintains it\u00e2\u20ac\u2122s purchasing power. Many look at gold in an asset portfolio as investment insurance against adversity, calamity, and currency devaluation. Love him or hate him, Jim Cramer of Mad Money, makes this very point here at the 5:35 mark:<\/p>\n http:\/\/video.cnbc.com\/gallery\/<\/span> If you are still reading this blog, perhaps it is because your investment broker (You pay him but have you ever spoken to him?) does not give you good investment advice and that is exactly what you are online searching for. I\u00e2\u20ac\u2122m going to share some things that he or she won\u00e2\u20ac\u2122t tell you. All stocks go to zero and become worthless. Bonds either pay out over time, or they default. There is no middle ground. The oldest company in the world was recently liquidated. Kong\u00c5\u008d Gumi Co., Ltd., was a Japanese company that lasted 1400 years and specialized in building Buddhist Temples. Of the Original companies that made up the DOW, only one still exists, General Electric. Eventually all companies fail, and consequently, so does their stock.<\/p>\n Investment Bonds, on the other hand, have a set life span to them called a maturity. Therefore, if the Bond Issuer is still around when the bonds come due, you are in luck. The downside is that they will pay you in Dollars that have consistently lost their purchasing power over the life span of the bond. Remember when gas was under $1.00? Now it\u00e2\u20ac\u2122s under $4.00. Perhaps your children will tell their children, \u00e2\u20ac\u0153When I started driving, gas was only $6.50 a gallon.\u00e2\u20ac\u009d Do you see where I am going with this? How well does a 30 year bond really pay-out when you look at it from this angle? The possible downside comes when the Bond Issuer of the Bond you are holding, goes belly up. Like Detroit. Detroit would never default on it\u00e2\u20ac\u2122s Bond\u00e2\u20ac\u2122s, would it?<\/p>\n Perhaps you can see more clearly now how if you compare the inherent value of an ounce of gold to the fluctuating and eventually failing values of assets like stocks or bonds , how the answer to the question, \u00e2\u20ac\u0153Will gold prices rise?<\/a>\u00e2\u20ac\u009d will always have the same answer: \u00e2\u20ac\u0153Why would it not?\u00e2\u20ac\u009d<\/p>\n Oh, and for you real estate buffs out there, consider this:<\/p>\n