Gold. For such a time as this.

Disastrous Facebook IPO catches attention of gold investors, highlights stability of gold

BOSTON (May 29, 2012)- Everything was set for a ground breaking IPO that could mark history, but May 18, 2012 turned out to be something many gold investors might have expected could happen: Facebook flopped on Wall Street in a big way. Shortly after Facebook founder Mark Zuckerberg rang the opening bell for the trading day from the social media juggernaut's Menlo Park, California headquarters, things began to unravel in a way that made many wonder if the heavily hyped stock would be more glitter than gold. The media has reported trading errors and such a sharp drop in the stock's value that even more investors may turn away from the stock market to historically more stable options such as investing in gold due to the fiasco which comes so soon after the serious economic shake up of just a few years ago.

An attorney from Chicago, Andrew Stoltmann, was quoted by the Washington Post as saying, "This is clearly the latest in a long string of events that is eviscerating the confidence investors have in the market."

Those who favor holding precious metals portfolios which include physical gold, silver and platinum often agree with this outlook. Many have stated they became gold investors specifically due to these types of scenarios that convinced them that stocks were not for them. While some continue to own gold stocks, many believe that tangible assets work better for their investment goals.

Small scale investors are particularly angry, according to Stoltmann, who went on to say, "The perception is Wall Street jiggered this IPO so the underwriters made money, Facebook executives made money and the small investor got left holding the bag."

Reports across the media say that many people got their first taste of the stock market by purchasing Facebook, Inc. stock and they are not pleased with the outcome of their choice. The outrage has even perked the ears of government officials who have been reported as saying that a deeper look into what may have been hidden from consumers' sight could be in order.

Investing in gold, like any other asset, does mean taking on risks, experts say, but when a company like Facebook that offers a web based service raises $16 billion with its IPO - that makes many wonder if smoke and mirrors could be at play rather than common sense.

To put things in perspective, journalists have pointed out that in 2010 there was a 'flash crash' that took over $860 billion out of the stock market in less than 20 minutes' time. These types of blips can erode investor confidence and shift the focus to assets which are tangible and have a longer history of stability, such as gold, silver or platinum. What could that mean to present investors? A rise in gold prices.

Clearly, no one is in a position to predict whether Facebook's Wall Street belly flop will affect the price of precious metals, but it could be the kind of spurring the precious metals markets needs to reach the recently predicted highs for gold that that Bank of America technical analyst Michael Curry predicted: between $3,000 and $5,000 an ounce.

If nothing else, the drama surrounding one of history's more significant IPOs should certainly remind today's investors that the Dot Com Bubble was not so long ago. Keeping an eye on the long term rather than being dazzled by short term chances to strike it rich could well be the wisest move in 2012, as well.