Although all investment options are risky, many investors are still skeptical when it comes to gold investment. There’s a common misconception that the price of the precious metal is more unpredictable than other stock options, but a deeper study of how gold trading and investment works will prove the opposite. Why is gold investment a smart choice, despite constant criticisms to the contrary? According to an article published on Investopedia, gold maintains its value in the long run, despite the volatility of gold prices. Gold investment is always worth considering.
Experts are saying that now is a good time to invest in gold, and reports by MSN – Money support this claim. Esteemed banking institution JPMorgan is confident that gold is back in the game, and people should start investing in the precious metal due to the following reasons: gold’s fall appears to be over, the demand for gold is strong, and the metal has a foreseeable supply squeeze. A current analysis by gold investment site Bullion Vault found that gold prices recently bounced back from a five-week low. Historically speaking, uncertainties in the fiscal issues of the US have a positive effect on gold prices. Still, investors wait on the sidelines for a possible price drop.
Where does gold stand now? The latest reports by Market Watch show that gold scored its first quarterly gain this year. Gold prices increased by more than 8% since the end of June. The president and CEO of Kerr Trading International, Kevin Kerr, said that gold is still very volatile—chances are, it may abruptly spike if the US shutdown takes place. Adam Koos, president of the Libertas Wealth Management Group, observed that gold buyers ultimately want to see inflation begin to take hold. Only then will gold buyers move from their stupor and end standing idly by.