With the current financial instabilty should we start to invest in gold.
Recently ive been getting really interested in gold and investing in this precious metal. The gold rush is now over, and prices have stabalised. However, with the recent foreign affairs issues the price of gold is increasing slightly. Is it best to jump in now and invest before the people get thrown overboard?? Who knows,
But it does slightly make me anxious when you see top business men solely investing in gold, even going as far as to only trading in gold. Why would they do this?? What do they know that we dont?? im not sure, but everything seems to be a little bit fishy!!!
Whats everyones views, ill leave you with a short overview of Gold 🙂
“Everywhere you look, people are talking about gold, and it isn’t even Oscar season. So why have precious metals been taking center stage?
Well, when investors are scared, they have historically bought gold, silver and other precious metals as a security blanket.
Beyond their uses in jewelry and industry, precious metals are seen as a hedge against inflation. Why? Because investors assume such metals will hold or increase in value as major currencies decline in value due to financial uncertainty.
Famed investor Warren Buffett describes the dynamics of this phenomenon best when he talks about gold: “Gold is a way of going long on fear, and it has been a pretty good way of going long on fear from time to time. But you really have to hope people become more afraid in a year or two years than they are now. And if they become more afraid, you make money; if they become less afraid, you lose money. But the gold itself doesn’t produce anything.”
In other words, precious metals tend to soar in price when investors have great anxiety about the future. But when that angst goes way, prices fall back to earth.
Well, judging from the prices of precious metals, investors don’t expect to be fearful a year or two from now. Gold prices have fallen more than 17 percent this year. Exchange operator CME Group had to halt the trading of silver four times on May 19 after prices plunged more than 9 percent that day.”