Gold's been all over the news ever since countries started to stockpile more of it (due to rising geopolitical tensions). It went almost past $2,800 only to go back to $2,668.
I wonder if I should get in now, or wait a little further? At the pace Gold is going, I think it will reach $3k soon. However, Trump's promise to end wars might put a stop to the craze. At least, temporarily.
What are your suggestions/recommendations? Your input would be greatly appreciated. Thank you.
I wonder if I should get in now, or wait a little further? At the pace Gold is going, I think it will reach $3k soon. However, Trump's promise to end wars might put a stop to the craze. At least, temporarily.
What are your suggestions/recommendations? Your input would be greatly appreciated. Thank you.
In my opinion, gold is a very volatile asset. Gold has risen significantly in price recently, but this rise has been almost entirely due to purchases by central banks of various countries. If we assume that these central banks start actively selling gold instead of buying it, then gold will depreciate very quickly.
As an investment asset, gold has many disadvantages, for example, it does not provide capital appreciation. Let's say I buy shares of a promising company, this company pays dividends, so I expect to receive not only an increase in the price of these shares in the future, but also dividends this year. With these dividends paid to me, I can buy even more shares of this company. This is a very profitable proposition!
This way you can significantly maximize your profit. However, gold does not accrue interest and dividends. Moreover, as a rule, it requires significant storage costs and, as a rule, owning gold is associated with trust in other legal entities, for example, commercial banks.
Gold is considered a good safe-haven asset, but if the economy is doing well, individuals and businesses will invest in stocks and bonds rather than gold bullion.