Current price of Gold

 

 

Does anyone really know why the price of gold rises and falls?

 

This is a question that has been asked by people for at least a thousand years.

 

The study of economics is an ongoing puzzle simply because nobody can really figure out how “money works”.

 

They can analyze what happened yesterday, but do a pretty poor job of predicting what will happen next week.

 

Big brains and even bigger computers are applied to the question of why stock markets rise and fall, why commodity prices rise and fall, why the value of currencies rise and fall and why the price of gold rises and falls.

 

In spite of all our new technologies, it’s still a mystery. And that’s a little strange when you think about it. It would be reasonable to assume that logic and some fancy algorithms could be applied to the study of economics and sort everything out nicely.

 

But it seems that the complexity of the world of finance grows at the same pace as the sophistication of our technologies.

 

The result being that every expert on the planet gets it wrong much of the time. If they didn’t, then it would be relatively easy to make big money by buying or selling stocks, or gold.

The day after the price of gold falls or rises there is a long line of experts who will tell you why the price rose or fell. (And most of the time they make totally unsupported assumptions in the process.)

But they can’t reliably tell you what is going to happen tomorrow, next month or next year.

 

That’s why we recommend that you look at gold not as an investment, but as a physical asset to own.

 

If you are trading gold or stocks in gold, then you’ll do fine when the trend is going up and up and up. Everyone makes money in a strong bull market. But you’re just as likely to lose when the market unexpectedly drops.

 

By owning gold as a long-term physical asset you can ride out the ups and downs most of the time.