Right now many investors are confused about the economy and want to know how to make their money work for them in 2012. It is no easy feat considering many are losing their jobs, unemployment is sky high and the economy is very sketchy.
Many analysts believe that 2012 is going to be a very volatile year, and the market is already showing clear signs that it will be a bumpy year ahead. You just have to look at some of the stats from the end quarter of 2011.
Despite what the pundits are saying, people seem to be flocking back to gold. It performed quite well in 2011, and after quite a large sell the big buyers seem to be coming back again. There is a real buzzing that has been around gold since the financial crisis and since 2008 it has perfect spectacularly.
Gold, seems to be hot on the lips of investors again early in 2012. The reason is because investors seem to be after high class assets, instead of developed markets, and emerging markets. Instead of putting money in stocks and bonds, investors still seem to be magnetizing to gold and silver. Gold especially.
In a survey conducted at the end of 2011, 34% of investors said they were more likely to buy and hold gold until the end of the year. Most are afraid that the deteriorating economy will get worse and feel that gold or silver is the best hedge against that situation.
With problems surrounding the Euro, and other currency markets, gold is again the shining star and the favorite amongst investors. Many investors are losing hope in the currency markets because of the gigantic debt levels in the U.S. and also countries like Greece and and Spain. Europe is again on the brink of collapse, and it is making money investors nervous.
April through to May this year were mentioned as months in which investors are likely to see yields spread for bonds. More problems are surfacing, inflation fears are circulating and things are looking grim. Nervous investors have learnt from the past and know that commodities such as gold and silver always do well in times of economic hardship.
The trends are suggesting another round of quantitative easing is also on the way. Which means that the debt crisis has not been solved. In fact debt levels are now so bad, the government cannot keep up with the interest repayment. That is not a good situation and with the U.S. dollar likely to weaken or lose strength, again that is favoring gold to be the best investment of 2012.