“As fewer and fewer people have confidence in paper as a store of value, the price of gold will continue to rise” – Jerome F. Smith
This is a guest article from James Brighton
Before the collapse of the markets after the banking crisis in 2007 gold was seen as an investment made my people too scared to enter the banking sector. It had not changed in price for over 20 years, and people were making millions from gambling their money on the stock markets. The banks were happy, and so were investors. This all changed in late 2007, and investors removed their funds from the banks and other investments they made as the stock markets collapsed. Gold suddenly became extremely popular and the price per troy ounce of gold reached unprecedented heights. Is gold still an option for those trying to make money?
Investors and Gold
If you are considering investing in gold then take a look at the market before you decide. The market has reached a plateau of around $1700 per troy ounce, and there is much confusion as to what will happen in the future. Some commentators believe that the peak of the gold market has been reached, and any further investments risk losing significant amounts of money.
They believe that something is going to give soon, the economy will improve, and investors will begin to sell their stocks of gold leading to a drop in the market value of gold. Other commentators advise you to continue to buy gold as the market will only improve in the future. If the Eurozone falters, and economies drop into a double dip recession, as many fear, then gold is still a safe haven. This kind of economic problems will lead to gold price being further increased, and that makes investment in gold appealing even when it is currently priced at an all time high. Consequently studying the market is extremely important before you decide to invest, spotting trends will lead you to a good conclusion as to whether gold is viable.
For Those Not Looking To Invest
If you simply want to take advantage of the gold market because of the high price, then you can certainly make money from gold. With the high price that gold is trading at, jewellers and various other companies want your gold jewellery. You can be sure that any scrap gold jewellery you have will appeal to these people, and you will be surprised at how much money you will be offered. Likewise if you have a collection of coins, your gold coins are now worth far more than they were six years ago. So if you are happy to lose part of your collection then you will probably be able to make a swift profit on any gold coins that you have. Some companies have used this as an excuse to take advantage of those selling, so it is vital that you do some shopping around. The money companies and jewelers can range wildly, so making sure that you go to more than one vendor is extremely important. Who wouldn’t want money for something that is simply sitting around!
Author Bio: This article was written by James who has a keen interested in gold and exactly what it can offer to investors in the current market.