Gold had a rocky state to start the New Year, with many investors doubting whether the bulls would be able to pull anything out of their situation. For a time, the bears seemed to be on the right end of the scale, but as soon as the second month of 2014 rolled in things grew more stable, and gold is coming back to its winning ways.
In Gold Company
Buying gold as an investment is a strategy many people want to enter into in order to diversify their risk and portfolio. In very simple terms, this means if you buy now, you will profit later. Demand for gold bullions is growing, and not just in traditional gold buying territories, such as India and China. Central Banks in the US, UK and Canada are buying as well.
In 2013, central banks around the globe bought about 369 tonnes of gold bullion. This marks 12 consecutive quarters wherein central banks have been net buyers of the precious metal. This is a record that stretches all the way back to 2009, when they were selling bullions to private retailers. The demand for buying gold jewellery in 2013 topped 2,209 tonnes; the highest it’s been since 2008.
Recipe for High Prices
Because of the 2014 naysayers, mining companies announced a slowdown in production, with some companies announcing production drops by as much as 10% from the levels in 2013. But with demand going up and stocks coming down, the only question about the price of gold is how fast it is going to jump up.
The success of any asset on the stock market depends heavily on a variety of factors, most of which are out of your control. The best way to make money is to look at trends, and predict which way the line will turn tomorrow. Right now, the line for gold is heading up, and central banks around the world know it. There will soon come a time when gold must once again enter the cashing out phase, and many people will see its price drop. But that is arguably the best time to own gold because that’s the ‘profit later’ part of the equation.
Insure your future and keep an eye on your assets, that’s the only way to get ahead in the stock game. Acquire the assets you know will pay off later, and there’s no sure thing than gold.