Investing In Gold - Meaningful Or Waste Of Money?

To make no raw material turn so many myths and legends around the gold. The precious metal is regarded by the laity as extremely value-resistant, safe and crises-protected.

Under these assumptions, gold appears to be a dead-to-be-safe investment. Many companies such as provides you the ways for gold and silver investment for your retirement and future use.

Nevertheless, not everyone has a gold bar in the cellar. Does it make sense to put money in gold , or has the train left long ago?

In this article, I will express my opinion on gold and make a cautious forecast. But more about this later.

What Exactly Is Gold ?

As always in the market economy, the price of a commodity is determined by supply and demand . In order to be able to think about future price developments, you have to know exactly what gold is, for whom it is interesting and who buys it in large quantities.

Gold Is Poured Into A Bar

Gold is a precious metal with very special chemical properties . It is with copper the only metal, which is colored in pure form. The golden glow has always charmed the people and strengthened the idea that gold is something very special. Eternal times, mankind was of the opinion that it possesses magical abilities. For this reason, jewelry was made of it, which was worn on the body.

Gold was processed as one of the first metals of primeval people. The early people loved it because it did not rust, it is relatively heavy and shines. The oldest gold objects found date from ~ 4,000 BC.

Because of its permanence and the possibility of easily dividing it into different sizes, it has been used as a means of payment since the 6th century BC. With the help of gold, the trade in commodities has been abolished, which has caused a great economic upturn. Who had many gold coins could buy almost everything.

Gold In The Here And Now

Today, gold is still a very popular material for the jewelry industry. Gold jewelery stands for prosperity and power. Due to its chemical properties, it is very popular in various industries such as electronics, optics and medicine.

In language usage, it is anchored as a valuable element. This is expressed by metaphors such as "the black gold", "hip gold" and "earning a golden nose".

A whole industry has turned to the counterfeiting of gold optics and supplies people with gold imitations worldwide. Many jobs depend on gold, and many people deserve to be involved in the precious metal business.

What Happens To The Gold?

If you want to invest in gold, it is especially interesting what happens with all the gold. Often, as an argument for a purchase is mentioned that the world-wide available gold quantity is limited and the price thus automatically to increase gradually. What is often not taken into account here is that new gold deposits are regularly found. In addition, well-known gold veins, which are currently regarded as not economically viable, are achievable through technical progress, thus increasing the amount of gold that can be promoted.

Another factor is that won gold is very rarely lost. It is constantly recycled and thus remains the cycle. By the year 2011, about 170,000 tons of gold were transported to daylight. If it were distributed fairly among humanity, everyone would have a little more than 1cm³.

About half of the gold was turned into jewelery. About 20% are held by monetary institutions, such as the Fed and the ECB. 16% were converted into gold bars and coins and then bought by private individuals. A little more than 10% were processed into art objects. This includes, for example, the processing on picture frames or the gilding of chandeliers.

The Development of The Gold Price

Although most of the laity consider the gold price to be very stable, a glance at the chart reveals that this is not the case. Within the last week, a downward trend can be seen. It is also clear from the analysis of the last year that the gold price is in a downward movement. Even within the last three years, gold has fallen in price and is currently $ 1290 per ounce.

Only when you pay attention to the price trend within the last five years, you see an upward movement, which seemed very constant at the beginning.

Various technical indicators indicate that the current downward trend could be reversed. Current banking and currency crises suggest that a medium-term increase in the price of gold might be imminent.