Why the Doubt?
It’s natural for markets to fluctuate. They all do and they all come with risks, some being more volatile than others. Gold is no exception. It fluctuates like all the rest of them, yet receives most of the attention. It has a long history of ups and downs. Even with its volatility people’s interest in gold has not waivered. Gold seems to have a lasting appeal except most recently with the decline of the global economy people are beginning to ponder if gold is truly the “safe haven” previously thought.
In the past few years some of the world’s largest hedge funds purchased gold with the assumption that as global markets fell into financial woes, gold would, as it has in the past, withstand inflation. But unfortunately, in 2011, gold did not fare so well. Gold trading slowed. The gold market was in a decline as well as many other commodities and stocks. Things were not looking good on all levels.
With the decline of the economy, hedge funds liquidated their gold. Many analysts feel this could be a leading cause for the most recent instability of the economy as well as contributing factors of the U.S. fiscal cliff and the euro-zone crisis. People have been afraid to spend and investors hesitant to invest in small and large investments.
The Gold Rush Lives On
As some people and investors question the validity of the gold market, others still believe in it. They believe gold still has a place in our economy and the ability to secure their future.
In the December 2012 issue of the Wall Street Journal’s, Market Watch, it states that in October of the same year, gold has jumped $200 an ounce since August, bringing the current price of gold to about $1800/ounce. It also says that in November, the U.S. Mint had its best month in the buying and selling of the American Eagle bullion coin and that bullion sales has risen to a six month high.
This is great news. The gold market appears to be leveling off and gaining momentum in the market again.
Gold’s Lasting Appeal
The love affair with gold continues. People once again are beginning to invest more heavily in gold than they have in years. The gold market is on an upswing; it is strong and flourishing. Investor’s interest in gold has not been abandoned.
As volatile as the gold market is, even in times of great decline, with patience you will find it continues to be a safe and a very profitable investment. Gold continues to maintain its value and its purchasing power. It is a good inflation hedge.
Kim Wong writes for various investing blogs on topics like gold, finance and investing. For more information about gold investing, contact the experts at Scottsdale Bullion and Coin for investing strategies and tips.