Gold has been going up, when Is it go into come down?

Gold has been going up, when Is it go into come down?

 

There are a lot of people who can be described as being obsessed with gold. Gold bug is used to describe a person who has a near obsession with gold. These people will buy everything in gold. Gold is more than an investment for them. They wear it in the form of jewellery, will buy fancy golden headphones, use it in their skin care regiments in the form of golden facials and will even try it in food. Those with the financial means, will have gold scattered all over their homes; in their furniture their kitchenware and even their bathrooms. 

Such people will be strong proponents of the gold standard. The period of the gold standard was a prosperous one. People understood what money was and the value of currency. The history of fiat-currencies, the credit booms and busts, political crises spilling onto the financial system still leads even the most savy economists to wish for a return of the gold standard.  

Gold is a good investment for anyone who wants to diversify their investment portfolio and hedge against risk. If you have gold, whether it’s in the form of jewellery or gold coins or gold bars, you can sell the gold to Brisbane gold brokers to get cash for emergency situations.

Over the last couple of years the gold market has been incredibly bullish, hitting highs of $1,500. The yellow metal is expected to reach upwards of $1,700 this year. Those with gold in their homes can finally cash in for a High return on their investment. So far, it does not look like gold is going nowhere but up. The expectations of the gold price boom has promoted a lot of people to start gold exchanges and dealerships.  There is virtually a gold dealer in every major city in the world. Australian’s have always had a serious love affair with gold. The country is one of the three major countries that were built on the back of the gold rush. 

In June of this year, gold reached an all time high of $AUD2,300 an ounce. Major gold miners like Newcrest Mining, Evolution Mining and Northern Star Resources benefitted in the rise in spot prices and their stock prices rose. Overall, the rise in the price of gold isn’t only beneficial to individual investors but the overall mining industry benefits as well. 

The price of gold has always gone up in response to economic and geopolitical uncertainty. For instance, then the price of the U.S dollar affects the Australian gold market and the strength of the Australian currency. 

Currently, there are a couple of things pushing the price of gold up. Recently, the major drivers have been the precarious nature of U.S politics and its trade war with China as well as the Brexit debacle that is playing out in the UK. This has made gold more of a safe haven given the volatility of the markets, weakening fiat currencies and the general decline in the value of the stock and bonds markets.

The highest the price gold before recent times has been in Australia was on September 5 2011 when it reached $AUD1,895 in reaction to the concerns people had about the debt situation the United States found itself in after the financial global crisis of 2008

You should not trust everything that you read. If you are going to participate in the precious metals market, information is power and you need to hear it from both sides – the side that is all for gold and the side that is not. Gold is a great safe haven investment and a great investment portfolio diversifier, but that does not mean that its price will go up all the time. Like most things that get traded on the market, the price of gold depends on supply and demand

  So, when that time comes to offload some of that gold you have been hoarding for a rainy day there are many Brisbane gold brokers you can visit. Remember, do you research and check their websites to see how much they are paying for gold and choose a gold dealer that will give you the best advice and offer the best deal on the market. 

 

Edward Powell

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