Gold has proven to be a great hedge fund and tool against currency instabilities and inflation. But some people are not only interested in fighting off inflation but also earning some money on top of their money. Did you know currency used to be pegged 1:1 to gold? So no more money would come in circulation if there wasn’t gold dug up. This kept the money supply limited and finite. The gold standard was dropped in 1933 first in the US.
With a limited finite amount of money on the planet money kept their value high. But after we came off the gold standard the banks and governments got unlimited power because they could just print it. The more something is around or common the less it value this is a layman’s explanation of what inflation is. Money is so common that it gets worth less and less by the year, month or technically every day. Also in this day and age people know how to make money, how to get new government projects funded causing them to print more money. People are getting smarter with their money but yet still more than 65% of people live paycheck-to-paycheck.
Predicting the gold price
Being sure or knowing where the price goes of anything is something nobody on this planet is able to do. However we can look into history and see patterns occurring. But knowing for certain where it is moving is an ability only fortune tellers possess. If you look at it logically, gold is a finite resource. There is a certain amount of gold on this planet, a certain set amount of weight is able to be discovered.So it is finite, we will run out of gold one day.
And whatever there is a finite supply off rises in value more and more.
So we established that knowing where the price of gold is going is something no one can do.
What you can do is an educated prediction or guess and there are people out there that do only that. Investors that analyze the charts, look back into the history they spend their entire day doing, often they share their opinions on a blog or on media outlets. For example this article named: gold price predictions for next 5 years is published by people that do exactly that day in day out. They are called the wolves of wall streets, the investors.
We can conclude from this that it is important to read up, to educate yourself. To go out there and do your own research. You should assess your situation and see if it makes sense for you to invest money into the market. It’s better to spend some money on a few good books to learn more and educate yourself more on the matter than spending that amount on a stock or on gold. Investing in yourself, to enrich your mind is also an investment.
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