When self-appointed gold experts make outrageous claims over the future price of gold, consider their motives.
If you are new to buying and owning gold, or are of a nervous disposition, you might find yourself swayed by the overblown claims of various self-appointed gold experts.
Typically, their message is that the price of gold is poised to go through the roof at any moment.
It is easy to be misled by these pundits, because their claims are usually based on elements of truth.
Yes, the world economy is still shaky. Yes, the long-term value of the US dollar is open to debate. Yes, both investors and countries will often buy more gold when they lose confidence in the value of currencies and stocks.
However, these factors do not automatically translate into a wild increase in the price of gold. There are always multiple factors in play when it comes to gold prices. It isn’t just a shiny metal, it is also a commodity. Changes in its price are influenced by many different factors.
So when you find yourself falling under the influence of one of these pundits, you should take a step back and consider their motives. Why do they want you to believe that the price of gold is about to go stratospheric?
Often they have products or services to sell, and the sales of those products or services will increase if they can persuade people that the price of gold is going to go up.
Perhaps they have a commission-based relationship with other companies which sell products or services.
Perhaps they have a newsletter, and the value of that newsletter will increase if they can attract a higher number of subscribers.
In other words, their opinions and rants may be tainted by self-interest.
How can you tell the difference between someone who truly knows what they are talking about, and someone who is making dramatic claims simply to line their own pockets?
Here is a simple rule to consider. NOBODY knows whether the price of gold will go up or down next year, next month, next week – or even tomorrow.
If anyone says otherwise they are either guessing, or spinning a tale.