There has been a lot of debate over the years as to whether or not gold is worth investing your money in. Some make the claim that it makes an excellent hedge against inflation; others might say that you can use it as a quick fix for some extra cash. And then there are some that invest in it when the economy is bad because they feel if everything crashes, at least their gold will still carry some value.
Most of the people look at the price of gold per troy ounce in a similar way they consider the stock market. It is very difficult to determine what causes the fluctuations by just looking at the investment vehicles. The gold prices are related to few core factors in reality. These factors can be complex system that can be very confusing even though they look simple on the surface. Here we discuss various factors that cause gold price inflation. The gold and prices also fluctuates due to many reasons like currency inflation, dynamics which causes increase in demand and the role of central banks.
In the last couple of years there was the time when Sensex touch 21000 mark and then it collapsed like the castle of card. At that movement all the investment bankers, media, top notch companies were applauding about the Sensex. But when it collapsed where these people gone, all the calculations of these high profile people went wrong. Now every one give emphasis on investing in Yellow Metal i.e. GOLD.
But question arises that “IS GOLD IS A GOOD OPTION TO INVEST”
As we see the past trend of gold prices Between 1970 to 1980 it was started from very nominal amount and goes till $ 400. Moving to the next decade it was gone up like a bull but within the couple of years it fell down and revolved around the 400 mark. Same trend we can seen in the next decade too but when we move our eyes towards the new millennium to 2010 it has shown the drastic change in its prices it started from $ 300 to $ 1400 i.e. 450 % increase. Shocking
Now as an investor I understand the value of taking risk but my bolg is for those people who blindly trust on the big whales or the media and later repent.
Thanks for spending your valuable time. Your suggestions are welcome.
