Gold has always been associated as a sign of wealth. Used as exchange for currency for century’s now. This also being one the most expensive precious metals on the planet.
The price of Gold can be triggered many different factors, the most obvious one is which gives its main value, how difficult it is to mine or resource this metal from the earths crust. Others can be the economy and industry demand, such as jewellery.
Gold Price Stability
Gold has always been classed as a safe haven for investors as it always keeps a large and good value. Start of 2016 seen gold price at 1070 USD per once, to a year high upwards of 1365 USD per once in July, a rise of nearly 28%.
Gold prices do fluctuate but always remain a good value, and as the mining of precious metals becoming harder, the metal becoming more scarce, the demand in price for this material will always get stronger, gold and mines are becoming depleted and finding new sites with gold deposits are becoming less, as the demand for gold will always be HIGH.
Economy will always play a big part in todays price of gold and the way it fluctuates, crisis in the global market can have a big effect, take BREXIT for example, this seen investors jump from a unstable currency to the safe haven gold. Investors pumped over 30 MILLION into Gold shares the day the Brexit results were announced.
Prices of Gold tend to rise when bank interest rates are low, investors buying into gold when bonds and savings rates are poor.
Dollar also has its effect, when the dollar price rises, the gold share price falls as investors put into the Dollar, but when the dollar falls people to tend to invest their money back into Gold creating a rise in the share price.
Industry and country influence can play a big factor, 50% of the demand for Gold is within the Jewellery industry, as long as their is a high demand for jewellery, there will always be a healthy share price. China is investing lots of money into Gold, filling up their bank reserves with this yellow material, plus the demand from the people in China and their ever growing economy is high.
Investing in Gold Stocks
Investing in Gold stocks can be profitable, buying and investing at the right time can see you money. Watching the market and knowing the factors that make the price fluctuate, will be your biggest tool for investing in the Gold commodity. Watching out for economic crisis, the dollar price, industry demand and country influence are all key aspects.
2017 could see a rise in gold price, for a number of factors surrounding Donald trumps presidency, first one is when Trump was elected this seen a drop in the value of the dollar, increasing the price of Gold.
The second is the trump factor, Donald trump wants to use gold standards as part of the U.S monetary system. The meaning of this is that he wants the U.S currency to exchange in the value of Gold (Gold Standards). The reason for this is because how stable the Gold prices remain, this bring a more stable Dollar.
Also the EU stability after the Brexit referendum, sparking uncertainty in the EU the Italians may be following in the same footsteps as the brits. The potential weakened euro will see a rise in gold prices as investors jump back to their SAFE HAVEN.
This year is the time to invest in Gold, with a lot of uncertainty in the worlds economy and dwindling Gold mines as the precious metal becomes harder and harder to source investing may see good profits from your investments.
Buying Gold Bullion.
Many benefits can be seen from buying Gold Bullion, first is paying no capital tax gains on money invested into Gold that doesn’t make a profit over £11,000 in a financial year in the UK. For example if you bought Gold at £10,000 and at the end of the tax year the asset was worth £21,000 the investor would not pay any tax on this.
Why add Gold to your retirement portfolio? In the year 2000 Gold was at $325 a ounce, now $1242 this is a substantial increase considering the hard times that have passed and the gold price has not dwindled but only came on stronger, for example, banks have collapsed, countries currency have seen major hits, mortgages and debit default swaps were creating massive recessions, gold price stayed STRONG and didn’t budge. Gold always being the fall back commodity for its investors because of its ever rising and stable price, the SAFE HAVEN!
With gold your always going to see a good investment on your money held over a period of time as this precious metal is always appreciating in value, as it becomes scarce it will become greater in value. This is INEVITABLE!