It’s been a tough year for the world’s favourite metal. Economic recovery has put the gold rush on pause – at least for now. With many investors dropping gold in favour of higher-risk ventures, gold value is on the decline.
It’s not all doom and gloom, though. In fact, gold’s loss is our gain. Here are five reasons why now is a good time to buy gold:
#1: Low price
The obvious reason to buy gold now is the recent price drop. Gold value was on a 13-year climb until last year. Naturally, you want to invest when prices are low. And after the precious metal’s worst year in over three decades, you can expect more gold for your money in 2014.
Buying online gives you access to the best prices available for physical gold. Coins, bullion bars and jewellery are a click away. Which means you can take advantage of lower prices without any hassle.
#2: Safe investment
There are few safe investments out there. Gold is one exception for a number of reasons. Firstly, gold value always increases over time. You get the occasional dip in prices – like we’re seeing now. But gold never goes bust and you can rely on prices to steadily increase in the long run.
There’s a more interesting reason though. The recent price drop boils down to improvements in major economies over 2013. Investors pump their cash into gold during times of crisis. When currencies like the US dollar are in danger, investors protect their capital with gold. Quite literally making gold a safe investment against economic turmoil.
#3: Economic crises
We’ve already touched on it. But we’ve also said things are on the mend. Major economies had a good 2013 – hence the lower prices. The problem is capitalism by nature runs in a cycle of highs and lows. It’s only a matter of time before another recession.
We can’t be sure when. Although many claim we’re already on the verge of the next crisis. Others will tell you it’s kicking off in Asia this time, before it reaches us in Europe.
Either way, it has to happen – that’s just the way it is so make sure you are backed with a safe investment to protect your financial future.
#4: Short supplies
There’s only so much of this precious metal in the world. And as banks hoard more gold and new investors enter the market, the supply gets shorter. Buying gold online has never been easier, but with the supply chain shrinking, now is the time to take advantage of easy access, while it lasts.
Lower gold prices have opened emerging markets in areas like China and Thailand. Demand is high at the start of 2014. This, following India’s major curb on gold imports last year, leaves demand on a level playing field across Central and East Asia. However, Indian authorities are in talks to relax regulations on imports – which would leave the Asian market in short supply.
Much like gold prices, demand fluctuates. Prices drop as demand falls which makes the precious metal more affordable to other markets, where demand picks up and raises gold value. With supply gradually shrinking, demand and prices will only increase over time.