Category: Physical Gold

Advantages Of Investing In Physical Gold

The Advantages Of Investing In Physical Gold

The price of gold is volatile, but throughout history, it has always been valued as a safe currency, unlike paper currencies.

We are used to always thinking in terms of price, but we sometimes have to get out of this rigid scheme if we want to get superior performance from our investments.

If we think in the short term, it is possible that the price of gold can move in any way because the enormous amount of speculative capital in the financial markets can influence the quotations of the precious to a small extent.

For this reason, it is not at all uncommon for gold prices to have a lagged reaction to a crisis.

An example we saw in the credit crash of 2008, gold plummeted along with major stock indexes as hedge funds were forced to liquidate their gold positions to make up for losses in other markets. Subsequently, the price reached all-time highs.

But the most extreme example was the fall in gold prices following the Asian currency crisis, and to a lesser extent during the 2011 and credit crises. Going back, the same phenomenon occurred in the collapse of the stock market in 1987.

There are two reasons gold fell on each of these occasions. The first, gold, as part of some commodity indices, is automatically subject to liquidation along with the other instruments.

Second, gold is sold to raise cash to meet margin calls from other industries. Once these reasons have been met, gold has reverted to its safe-haven status in most major crises.

The bottom line is that gold has always been valued throughout history while paper coins, sooner or later, have always failed. So while gold may not always move in the direction you would expect it to move, it is still reasonable to expect gold to maintain its purchasing power over the long run, whereas paper currencies do not.

Throughout history and in all civilizations, gold has been valued and desired. It offered security in times of political or economic crisis. In extreme situations, having physical gold could make a big difference. Gold is nearly indestructible and will not corrode or rust.

The amount available changes slowly and the amount of gold mined each year is a small fraction of what exists.

Gold has been a ” reserve currency ” and safe haven for thousands of years, and those who understand history know it will always remain that way.

However, to get the most out of your gold investment, it is imperative to conduct analyzes and devote a lot of time and resources to studying this metal. Or read articles and professional analyzes written by expert authors like us.…

Physical Gold Is A 5,000-Year-Old Formula That Guarantees Our Capital.

When it comes to investing our savings, we often turn, in good faith, to people who are strangers or to people who have to propose certain paper-based investment formulas. The price of gold last 2016 gave us a decidedly good performance, bringing prices from a low of $1,050 per ounce to a high of $1,375 per ounce in the hottest period of the year. Then the prices fell again, following a decrease in the perception of the crisis and an increase in the stock markets or a renewed appetite for risk.

In recent months, however, the price of gold remains within a price range between $1,140 and $1,250.

But the fundamentals have not changed and are still in favor of gold. The appetites of China and India (the two largest consumers in the world) have not faded even though India has registered a decline after government authorities imposed taxes on gold imports to reduce the trade deficit and especially after the demonetization which hit hard the sales to private individuals. But the Indians who have gold in their DNA, after an initial moment, have started to buy back the precious metal.

The Central Banks themselves, and we are referring in particular not only to those of emerging countries but also to Russia and Kazakhstan not to mention China, continue to buy gold, to be included in their coffers to preserve wealth.

But we in particular in this column are interested in understanding how to market variables influence gold prices. To understand the reasons, it is important to evaluate not only the news of macroeconomic nature but also and above the technical characteristics of these movements which move the price of gold up or down.

The movements defined as technical, are those observable with great attention in the graphs that draw the trend of the quotations. Quotations that not only discount the news but are subject to precise rules. If in the short term, downward pressure remains, in the long term the trend remains positively oriented.

There are several fundamental factors at play in the physical gold markets which at these levels see factors of a different nature opposing each other, but all aimed at favorably influencing the price of gold. These include a modest recovery in the pace of growth of the global economy, overly optimistic fundamental data from the United States, Europe in recession, the rally of stock markets bloated by the ample liquidity, and still a strengthening of the US dollar.

Investing a small part of your capital in Physical Gold and Silver allows you to correctly diversify the allocation of your savings, protecting you from unpleasant surprises, as we often hear on the news.