Gold is such a strong investment that it is considered the 4th investment class, along with stocks, bonds and cash.
The current gold prices have been fluctuating by a small amount the past few months, with the trend being more up than down. The fluctuations int the price is nothing to be concerned with as it is a common occurrence in the market for each particular stock.
The average Goldprice will range depending on where the stock market is at that particular time, the fluctuations in supply and demand, and the difference in gold price found between retailers and wholesale-investors. The history of the gold price has seen rises and falls but it is still, and will remain, the standard by which the worlds economy is based.
At the start of February 2013 the goldprice fell to roughly $1,667.64 an ounce. As of February 08 it has rebounded to $1671 and looking to hold strong. The gold price has been on the rise for the last few years, and though we have seen some dips in the value, the price of gold looks to be on a steady rise. Those who chose to invest in gold during the economic peak of the mid 2000′s have really hit a home-run as the gold price has more than tripled since that time!
Understanding Gold Price Changes
As stated above, buying precious metals is a very wise investment and a great addition to any portfolio. We have seen unprecedented rises in the gold price and silver price over the last few years; Unfortunately, many of the newcomers to the precious metals investment industry are susceptible to the daily rises and falls of the stocks. Those who don’t fully educate themselves on the industry aren’t able to understand the patterns that accompany the stock industry. People find themselves trusting the fear-mongering articles that abound the internet and prey on the uninitiated. What needs to be understood is that many of the authors of these articles write such content to grab your attention and buy into their product, and in many cases it works!
There are 3 main aspects that I feel each new investor should focus on before making their precious metals investment:
- Volatility In The Goldprice Market: The constant rises and falls of the goldprice play right into the hands of the bankers, brokers and agents of the gold industry. The daily prices of gold and silver are set by fake paper derivative markets (Which bankers control) to be advantageous to the bankers themselves. Often times the prices are set with no regard to the actual physical supply of gold and silver. These prices are a result of influences made by struggling hedge-funds. It is key to remember that the quick and drastic up and down-swings are most often a result of the paper derivative markets and will only play a small and short-term role in the overall stock value.
- Patience Is A Virtue: As stated in aspect #1, bankers set the fake paper derivative market for gold price to be advantageous to their own investments. The bankers who set these prices are hoping to persuade the uninitiated into selling their stocks before the next big jump in prices by creating volatility in the market or to discourage them from buying at key moments. It is most prudent to not focus solely on the daily rises and falls of the gold price but rather to watch the weekly and monthly trends in the market as your guide. In 1939, one of the leading gold stocks lost some 50% of its value due to economic crisis and instability. Anxious investors sold their stocks at a tremendous loss to their initial investments, only to see the stock rise again to +1,258%. So as you see, patience in your precious metal investments will bring you far greater returns in the long run.
- Avoid The Disinformation of Big Banks: It is in the best interest of brokerage commercial banking firms to discourage you, the buyer/investor, from investing in to precious metals as it is lost investments for their company. The agents will likely tell you that the “goldprice” is far too fickle to include it in your investment portfolio and that there are zero gains to be made in such and investment. You, as the investor, must remember that consulting with these agents will only gain you misinformation as it represents lost revenue for themselves.
So as you see, the investment in precious metals is not one to be taken lightly. It is best to closely study the trends in the market for at least the last decade, and to consider the worlds financial status before choosing which precious metals to invest your hard-earned money into. Agents of brokerage and commercial banking firms should not be consulting in regards to goldprice and silverprice as you will only gain misinformation.