Prices for gold have hit new high again with it reaching US$1,565.70 per ounce on April 29. But, how high gold prices will go has become a hotly debated especially as the metal has been unable to sustain highs.
Do you know why gold price keep going up even during economic recession? Gold is considered a safe haven bet against high inflation. Recently, gold price keeps on going up probably caused by the social unrest issues in the Middle East and North Africa which raising the prices of oil. Plus, western countries see the financial imbalances in the western economies as a more dangerous long term threat to global financial security.
So, in the long term, gold will be a good investment option because of its ability to ride out economic uncertainty and global pressures
How High Will It Go?
Based on gold historical price, it has seen a steady rise in value, and for those who have invested in this metal early then they are definitely making good profit. However, if you’re not already invested, and now wondering whether this ride has reached its peak or how to manage your gold investments for the future. Then, you should better consider it properly.
Based on my understanding, the current climate is also similar to the situation of the Dow Jones Industrials Average(DJIA) in the 1980s, where the index broke into four digits, and those who understood the trend were able to make their money simply by adopting the “Buy and Hold” approach onto their equities then they can make profit of it.