If you are looking for a long term investment, today´s 24-hour gold chart should pique your interest. Gold prices have flitted between bearish and bullish trends lately, with sudden momentum and a steady upward or downward movement. If you compare this to a forex currency pair for instance, you will be shocked at how calm gold pricing looks in comparison.
When you are looking at a dip in the gold charts it is disappointing, however if you are buying physical gold as a long term investment, you will be unaffected if you do not need to cash in your gold while values are against you. Various gold allow you to assess the highs and lows of gold over the last 24 hours, a month, a year and even a quarter of a century. Study the charts and you will find gold has an ever increasing price which makes it a good long-term investment.
After 1968 gold pricing became more volatile. In the last 25 years, charts show that the lowest price was $256.80 per ounce. The years between 1980 and 1982 saw a dramatic spike, pricing rose to over $600 per ounce, then averaging between $200 and $500 until the millennium. Pricing has been climbing since 2002 to 2011 peaking at $1,800 per ounce, then a downward trend is seen over a period of less than a year dropping no lower than $1,200 per ounce, and is now making a bumpy recovery.
Today pricing is averaging around $1,400 per ounce. Gold has a long way to drop if the momentum goes into freefall, however we have to consider what the chances are of a downward trend.
Supply and demand
Gold bullion is an ever desirable investment during difficult economic world currency, simply because it is no longer used as a currency. It has not been regularly used as a currency since the early 1900’s, and does not suffer the effect of inflation in response to Quantitative Easing like currency.
Gold has a finite supply, mining continues as well as over 50% and sometimes as much as 95% of gold is recycled because of its value. However a proportion of gold is bought and locked away for the foreseeable future. Gold is malleable, resistant to corrosion and most chemical reactions, it is a conductive metal, and with these properties some gold supplies are used industrially and may or may not be suitable for recycling. Gold is also used in the making of coloured glass and gold leafing.
Collectors account for proportions of gold supplies in the form of coins, and these are unlikely to be recycled. There will be some that literally get lost, and maybe end up in a landfill site or similar waste environment and it is unlikely to be re-discovered in the future through a mining process.
Ultimately gold supply will diminish. This is not a concern for the immediate future, but the ultimate prediction is there. Therefore, when you considering the prices indicated by the gold price charts, now is a great time to invest in gold!