Gold prices spiked below $1,300 to above $1350 today and the indicators suggest this is a good time to buy gold bullion. The precious metal has seen a rally just lately, quite unusual for September, but given gold bullion is a solid long term investment and several political factors have left a cloud over the stock market, it was inevitable that that investors would return to buy gold bullion in huge quantities.
Because of its stability a gradual rise was predicted and yesterday 74 per cent of traders ploughed their money into gold. This is probably because of price lows compared to the end of August when it was over $1,420. Demand is still strong.
Although there has been positive economic data released from most of the strong trading countries, investors need to be aware that analysts have a concern that a down turn will be seen because of the accelerated printing of currency during the world economic depression.
When the true effects are felt in the form of inflation then gold investors are likely to be relieved that their gold stocks will not feel such painful repercussions. Once the economy settles with devalued currencies and new economic growth, then analysts will then expect a stronger and true economic recovery. A proportion of traders are holding onto and making new gold investments until then.
Gold price spike
It is also affected by the increasing risk of failing negotiations with Syria to recover and destroy chemical weapons, the UN confirmed that these attacks did take place in August, but neither the Syrian government nor the rebels have taken responsibility for the attacks. If evidence is found to prove this was Syrian government responsible and they do not surrender these illegal weapons then military force is likely.
During times of war and economic depression the price of precious metals has historically sky rocketed and analysts will expect a repeat, therefore prices today seem excellent for setting up trades to make healthy profits when prices spike. However if negotiations are successful then trades may not pay off as quickly as desired.
Bullion is measured in mass and is typically in the form of a bar. Bullion coins are equally measured by mass, quality, minting and rarity. Visit coininvest.com and check out the choice of gold coins and bars and make an investment you will not regret.
Gold is one of the world’s natural resources and as one of the members of this exclusive club it does not have an unlimited supply, supplies will dwindle and prices will rise but along the way there will be peaks and troughs. Investors have the options of playing the market with buy and sell trades in response to market trends or alternatively to relax with a long term trade keeping gold stock for months and even years for bigger gains. The cost to an investor is the safe keeping of gold usually with a secure location over a long period of time.