Valuable Investments

Is it a good idea to invest in gold at the moment? That's a question many people keep asking themselves. "There is never a perfect moment" - as one saying goes. However, when it comes to investment, there should be a perfect, or at least more suitable, moment when you should invest, or unload your portfolio. It is never a wise choice to follow the herd and then left hanging on a cliff at the exact point where price changes direction. "Buy low, sell high", as simple as it sounds, is not easy to implement in financial investment, for most of the time you only make assumptions about the price. Future price is hard to predict, and statistics show that you make mistakes many times. To make your trading strategy profitable, you need to make more profits each time you are right than losing money each time you are wrong.

is gold a good investment right now

Despite the unpredictable nature of the world financial market, gold rating has managed to keep climbing up over time. It is a safety practice that governments purchase gold in times of hardship so as to protect themselves against the devaluation of their currency and other investments. Gold is the cornerstone of any sound investment strategy.

The current financial situation may look very pessimistic as everyone is waiting for the next recession. Bad news comes out almost daily, and the instability of the political scene does not help. With the United States at the center of the picture, world's economic outlook presents an unpredictable future where policies could be dropped and new restriction kicks in. For the individual investor, buying or selling gold, and other precious metals, is a better choice.

Extra information about is gold a good investment right now

Buy & Wait vs. Trading

Gold traders are people who acquire gold when the price is low and immediately sell it when they make a profit. Long term investors, on the other hand, may wait for months or years and hold on to their investment. Choosing which strategy to follow is a matter of character. Some people have a higher risk aversion level than others. When trading gold, you have to take the transaction costs into consideration, for it can take up a large part of your profit.

Interest rates affect gold costs. The traditional market wisdom is that when interest rates are raised, gold costs will decrease. The reason behind this is that gold pays no interest at all, so CDs, bonds, and other financial instruments become more attractive options. 

Short term traders watch interest rate fluctuations like a hawk, while long term investors may not be influenced by the change at all, or consider it to be an opportunity to add to their portfolio.

Investing in gold is a smart move to protect your wealth against inflation. Despite the seemingly high price, gold has proven to always increase its price over time. If your portfolio does not consist of gold investment, it is time to rearrange it to safeguard your money against a falling economy.