Today gold price hasn’t seen much movement since yesterday’s drop after the reveal from The U.S. Federal Reserve’s FOMC minutes. The US Central Bank announced it would be sooner rather than later that they will begin tapering the bond buying scheme.
This news had a sharp response from gold traders, not to mention silver traders. The price of gold dropped an approximate $117 in just over week.
However on one hand analysts think this response has already set the price and do not expect any further great movements, but on the other analysts are cautious.
The world economy has been and is continuing to fight for growth, however with growth comes an increase in interest rates and rising inflation. Investors are fearful of this, but when it happens and analysts are almost 100% agreed that it will, then it will open other investment markets.
Demand for gold
With this information and the drop in gold price, it seems the buying frenzy has begun. However it is leaning towards a greater demand on physical minted gold, as opposed to ETF’s.
This drop in value is seeing 90% of gold traders buying with only the remaining 10% selling. Investors are making the decision that buying now is a good move, looks like they do not expect another massive drop in value.
However any trading faces risks as there’s no guarantees, but if you buy physical minted gold then you can hold as a long term investment and you will have the luxury of knowing that analyst’s long term predictions are for gold value will rocket in the future.
It may still be possible to make a profit in the shorter term, this will be dependent on several influencing factors. Gold demand usually reduces when the economy is healthy, you will need to watch economic data that is released daily. Government reactions to this data will also affect the gold market, the same as news of the tapering of bond buying and Quantitative Easing. Interest rates and inflation are also big reasons to buy or not buy gold. If inflation was to rocket, then gold buying would traditionally be a popular response.
Today´s coin market
What will you get for your money in today’s coin market? Well today you will pay less than you would have needed to a couple of weeks ago to buy a 1 oz. gold Britannia coin, you will save between £40 to £50, and with coininvest.com you can own it for just over £800.
Is it a sound investment? Well actually it seems like it would be, the mark of the Royal Mint and the depiction of the Britannia figure are actually very sought after globally.
Alternatively if you are looking for an overall heavier gold weight and you have the budget to back it up then look for the Lunar Snake, a massive 10 oz. of gold. Today it is being sold by coininvest.com approximately £300 less than it was a week or so ago, it’s now priced at just above £8,100.