Tag Archives: US economy

The Question of Investing in Gold

Precious Metals Investing
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The modern market for investing in gold is a volatile one.  Gold has been skyrocketing in price over the past decade, and many thought that there was no end in sight.  However, 2013 has brought a slowdown in the rise of the price of gold.  April 2013 especially showcased this trend.  Therefore, there was much talk about the possibility of gold finally dropping to the tune of billions in losses for investors.  However, it is vital to understand why the price of gold increases and decreases before jumping on the bandwagon for either side of the debate.  Investing in gold can be a shot in the dark, but there really is a rhyme and reason to it in the long run.

Ups and Downs

The entire reason that gold was increasing in price in the first place had to do with the poor world market.  The turbulence of the world recession caused investors to seek the traditional hedge against faltering economies that is investing in gold.  Gold has no ties to any world currency, and so its value is entirely in how valuable people see it.  With markets and currencies collapsing, gold suddenly looked very appealing.  Indeed, the European market in particular has given reasons for gold’s increase because of its completely unpredictable nature and its reliance on America’s economy.  Markets in the US and in Europe, therefore, were pushing up the price of gold.