Gold is a precious metal. If demand increases and supply is limited, then prices will trend up. However, as a store of value, gold tends to perform poorly in an economic environment of high interest rates, strong economic growth and relatively low inflation.
Gold does not generate earnings or a regular stream of income which I’m always looking for. Traders like me only can speculate on short term price movements. This rarely works in favour of serious investors seeking to achieve key financial objectives.
For me, gold is considered as a safe haven financial vehicle. But it does not mean investing in gold is risk free. Gold prices ended last month at a 6-month low, pressure by the stronger US dollar. As I said before, gold and the US dollar always have an inverse relationship. This time it’s proven again. Besides that, gold may not entirely liquid as you may need to wait for the most appropriate time before you can exit with a profit.
Gold Investment Account