Keeping an eye on gold prices is important in order to make a smart investment move. If you would like to purchase gold bars or gold bullion coins, it is important to know when the price is low enough and what type of gold is worth investing into at that time.
The current gold price per ounce is displayed in real-time on the right side of this page. You can see the evolution of the price of gold in the past month, pas quarter, past year and past 5 years. As you can see, the trend is upwards. Investing in Gold as early as possible is generally a safe bet, as prices over the long term can only be higher, due to limited supply and higher demand during rough economic times.
Why Keeping an Eye on Gold Pricing is Important
The price of gold fluctuates every hour of the day. It is important to check the price on a regular basis (every day at the very least) to know when the right moment for you to buy is. The spot price of gold has been continuously going up for the last 50 years and this trend is expected to stay the same for the next 50 years. However, there will be occasional irregular drops and spikes in the price that you should be aware of. The best way to make an informed decision is to deal with a financial advisor that has experience with precious metals investing.
What influences the Gold Prices
Many factors influence the price of gold. One of the main elements is the fact that gold is only available at limited quantities on our planet. Also, there is only a limited amount of gold being extracted at any given time. If demand is higher than supply, prices will naturally go up. If supply is higher than demand, prices will drop down. When the economy is in turmoil, many investors turn to gold as a save haven investment. The reason is that the currency, stocks and bonds become very volatile during difficult economic times. Gold and other precious metals are the least risky type of investment because it has been proven in the past that their price doesn’t get affected by the economy. Many financial advisors recommend investing 10%-15% of one’s portfolio into Gold as it becomes a hedge fund, protecting your overall assets in case any of your other type of investment goes downhill. Read more about What influences gold prices.
A Cause for Gold
In this video, Mike Maloney, world renowned investment advisor, explains why Gold has been such a valuable type of investment in the past decades. He also explains why the economy is failing and why the current financial and political system are deeply flawed. A video worth watching for anyone interested in strengthening their asset portfolio in 2012!