Gold bullion prices evened out at $1,310 per oz yesterday after a spike was seen on Tuesday which took the precious metal up to almost $1,340. Gold bullion bars are at a low in comparison to 2011, 2012 and even the start of 2013 so this leaves room for a further advance on prices.
Price moves in either positive or negative trends will continue, but long term predictions are that prices will continue to keep as we head towards the end of gold supplies.
Although for now at least this seems a long way off because the end of supply will not be reached until an estimated 2033. Profits can still be made with a range of buy and sell positions in response to current world economic and political events.
Gold bullion bars are valued on carrot and weight, this is more easily valued than gold coins, where designs, rarity and condition can carry a premium. So gold bullion bars are a more likely candidate if you are investing in precious metals rather than collectors pieces.
Drivers for gold price
One of the big drivers for gold prices to rise in recent times is the illegal use of Chemical weapons in Syria. This however is not an urgent threat while negotiations continue and weapons experts have crossed borders to dismantle and remove these terrifying weapons. If negotiations fail then a price spike is expected because the U.S. have already confirmed they are ready to initiate a military strike against Syria.
Equally another force for price rises is the risk of an inflation explosion in response to the extensive currency note printing across the world during the depression caused by the banking crisis. If world leaders are able to avert or control these effects then this price spike will equally be mild. There will however be trends that occur in preparation for this concern that may settle quickly if concerns are unfounded.
Gold prices in the balance
With this information we can make a relatively safe decision to buy gold at today’s prices. Investors are forecast to make a tidy profit if either of these world events develop, but if not then we can play a long term trade into the future. Gold value is likely to be affected by other unforeseen world events, so it is important to always keep an eye on gold prices and braking news.
You can buy gold bars from coininvest.com, prices ranging from £32.00 for 1g and over £26,000 for a massive 1000g. Firstly, deciding on your budget will help you make a decision about the karat of your gold purchase and the weight.
Whatever your budget, gold is likely to be a good long term investment that paves the way for allowing for small windows of short term profits. If you are looking to make a quick profit you have to act quickly and invest huge sums, but in general, the average investor will be better off making a long-term investment in gold bullion bars.