Investing in gold is a strange concept to most investors. Stocks make sense, bonds too, even commodity futures are easy to comprehend. Gold is a whole different animal. It’s used in industry but that has practically nothing to do with why the price of gold goes up or down.
Gold has already shot up big the past few years but still many believe it is only the beginning. Everyone is expecting a gold spike similar to the previous one in the early 80’s. Adjusted for inflation, gold was at it’s highest point at 3200$ per ounce in todays dollars. And since everyone is using that number as a point for comparison, investors won’t be thinking about selling until we hit it. If we really end up topping that, there would still be at least a 450% price rise on the way.
It may or may not happen but in any case gold investments have huge upside potential and are an interesting field to say the least. Price rises in physical gold can give a huge, huge leverage for those holding gold futures on a margin or gold company stocks.
