At the moment we are talking about it right now, the gold price is $1860.80 in COMEX. The gold indexes increase 0.43%, while S&P 500, Dow 30, and Nasdaq indexes all decrease. It indicates that the gold price is still growing, while the stock prices are dropping. Comparing the historical percentage return for the Dow Jones Industrial Average against the return for gold prices over the last 100 years, it shows that both gold price and stock price are increasing. However, the stock price is growing way faster than the gold price, but even if the gold price does not grow as fast as stock prices, it grows more stable.
Therefore, an investment within gold coins or bars is a great way to safeguard your wealth during bad economic times or inflation. Gold trading can be viewed as very profitable and secure considering the fact that it has always had a value compared to the paper currency since earlier in history.
What are the factors that affect the gold price? And when is the right time to sell gold?
Ideally, the price of gold should grow so you should try not to sell gold coins or bars unless it is necessary. But if you decide to sell, when is the right time to sell gold?
Here are couple factors that affect the gold price:
- Gold demand and production
- Central bank gold reserves
- Import duties, taxes and transportation cost
- Dollar value and exchange rate
- Political affairs
Gold price is most likely going to increase as it always has been. If you are interested in investing, it is safer to invest in gold. Keep an eye on the news and the price of gold to buy and hold it. There is still a chance to make a decent profit!