Gold News Will it Keep Going Up: Those who decided to purchase gold in the year 2011 have all the reasons to smile at the end of 2012. . This is an increased 25% on the amount of the metal they may have purchased last year, which implies a 25% profit if they did decide to sell their gold when the prices of these precious metals escalated.
However, it is still wise to hold on to your gold or is time for you to sell it? What is the forecast for gold in the year 2013?
If you will ask the experts, they see that it will perform the same. Investors would wish to stick on the safe side. They are interested in purchasing risk-free items rather than rely on fluctuating currencies. Moreover, the prospect of inflation serves as an additional deterrent for them to go and be confident in letting their wealth rests on unstable currency pairs.
Why the Sudden Demand for Gold: A Look at the Past
When the demand for gold increases, it only speaks of one thing. Investors are not too confident with how the market is moving and they would wish to keep their money safe with these precious metals. This is not surprising, especially with the current crisis still experienced by both the US and the Eurozone.
Look at the past incidences of the gold currency; it is noticeable that similar results has been reported. The Cold War resulted in a sky-high inflation rate and savings-and-loan crisis was extremely felt in several countries around the globe. In addition, the price of oil added to the tension and pressure of the global economy. During this time, once again the gold currency rose in power and was sold at $2500 an ounce (if one is to base it on today’s dollar).
Gold during Ancient Time
Gold has long been used as a form of currency exchange. During the time of the Pharaohs of Egypt, the Emperor of China, and the Dynasties of the Europe and other governments of the ancient world, it was the one of the most valuable commodity. It managed to survive centuries and it is expected to remain this in the future as one of the most stable commodity to ever be affected by economic fluctuations.
The Entrance of the Year 2013
Although many are optimistic with the investment strategies moved forward by world leaders in Europe and America, many investors will not be too bold in letting their wealth sit on unstable territory. The US Presidential Election is now over and it has created a little stability with the US Dollar Currency. Changes in polices in certain European Unions, bail-outs, and economic adjustments in policies are making a few investors smile. Nevertheless, much is to be seen before these investors start gambling their money into the currency market once again.
The Japan Style Deflationary Spiral
The remaining concern for those who managed to purchase enough gold for the year 2011 is to learn when it is best to dispose of these investments. The biggest fear is for you to hold tight to your guild yet realize too late that the demand has decreased and the price of gold has already dropped. The best solution is to have a good financial and investment analyst by your side. Otherwise, you should start reading the news and observe the trend in the economy to see a hint of decrease of increase in the price of gold commodity. As of the moment, there is nothing to fear because most financial analysts believe that the price of gold will remain high, especially in the early quarter of the year 2013.