Dollar concerns spark interest in gold
The founder of a coin business is noting a growing interest in what he terms one of the safest investments in financial security-gold.
Pedro Smith, head of Gold Rarities, said he has been receiving an increasing number of calls from curious Bahamians interested in investing in the relative stability of gold. It comes as the debate about the nation’s economy continues, with concerns raised recently about the $4.1 billion debt and its possible effect on the value of the Bahamian dollar.
“Basically people are catching on to gold as a good alternative, “the U.S-based businessman told Guardian Business yesterday. “Their concerns are based on factors happening with the economy. Basically they fear that (debt) will continue to rise, and the government borrowing and financial experts talking about the possible devaluation of currency is something that creates concern among Bahamian people. The gold offers them the opportunity to safeguard their fortune in coins.”
He’s spent $2,000 over the last several weeks marketing in The Bahamas–his homeland–something he plans to do up until the second quarter of the year. It’s a marketing plan centered around telemarketing messages, which are commonplace in the U.S.
Smith said given that investing in gold has become quite the trend with our northern neighbors, he expects things to go equally as smooth in The Bahamas.
“Whatever trend is happening in the U.S., we also adapt to it in The Bahamas, so many experts are talking about what most Americans are doing, “he said.
Historically gold-devoid of any default risk-does well when the dollar declines. However, up to yesterday gold was down nearly $100 from its high on December 7, following a 9 percent jump due to an increase in demand.
Still, international money experts say gold is an ideal asset for those looking to diversify their portfolio and risk management strategies.
Smith said silver, on the other hand, was not as in great demand as gold. He is also now looking to start a joint venture with a business associate located right here in The Bahamas in anticipation of business to come.