Gold, like a stock, has market price that fluctuates every day based on investor incentive and market mood. It is a store of value, and has been historically regarded as a safe and steady play for those looking to move their money to an asset that fosters more security than riskier growth stocks in the market.
When considering whether now is a good time to buy gold, it is important to understand what makes a good investment. If an asset is out of favour, but has a strong future, this is an opportune moment to pick it up and add it to your portfolio. This is because over time, the asset will hopefully grow in value and you will be able to sell it for a profit in the future.
Gold specifically has been out of favour for a while now, with a major bull run in the stock market taking the headlines and seizing popularity from the majority of retail investors. Gold is traditionally a safe haven, and so if you are looking to shift your money due to worries about your current stock holdings, it might be a good time to buy gold.
However, the past year’s performance of gold has shed a shadow of doubt over this stability that we have come to believe in over the years. When the stock market crashes, gold usually rises in price. However, during the coronavirus crash, gold did not rise as expected; it also fell. This points to a potentially new outlook on the asset, and may be something to consider before you buy it.
The big downside of holding gold is that it does not pay interest or dividends, which some riskier investors may be turned off by. Having said this, as we approach a position in the stock market where we see a range of overpriced stocks across all sectors, it might just still be safer option to have some gold in your grasp.
As the market sentiment around prices of stocks begins to become nervous and shaky, gold remains a decent option to move back on. If you are interested in buying gold, you should consider vendors in your local areas. The amount of gold buyers MelbourneLinks to an external site., Sydney and other major cities has been increasing in recent months, and so this could be a sign of things to come. Nobody knows exactly when the stock market crash will occur, but it is almost definitely the case that it will happen. Therefore, having some reserves of a traditionally more stable asset could possibly be a good idea.
Overall, there are a range of pros and cons as to whether buying gold now is a good move. Gold is still viewed as a fairly stable asset that holds more safety than riskier stocks and other products, but it has shown a slightly more volatile side to itself that we haven’t seen before. Therefore, for gold buyers PerthLinks to an external site. in Melbourne and other cities, it’s important to be aware of the market and research properly before making these decisions.