Tracking the Price of Gold

Answer 1

Have you ever heard of someone investing in gold in order to make or save money? This is a common tactic because gold is something that will always have value. Even if the market moves all over the place, the gold will be worth money in any market. It is a solid commodity that can be traded, one that has been traded for countless years. This security is what draws people to gold, especially when they are nervous that the financial market is not going to be very stable.

It is important that you track the price of gold, though, to make sure that you are buying and selling it at the right times. It moves up and down just like the Stock Market or the forex market. When the price dips, you can buy some more gold, and then you can sell it when the price goes back up. This may be years later, or it may just be a few days. It all depends how volatile the market is at the time. You will have to judge this for yourself.

If you are interested in the price of gold just because you want to buy it and hold onto it for a long time, as a way to save your money, it may be less important to you what the market is doing. You are not investing for gain but for security. You still want to take a look just so that you understand what you are getting into, but it is nearly impossible to predict the price of gold in thirty years with any accuracy. You are just going to need to watch it as the years go by.

If you want to invest to make money, though, the price of gold at any given time is very important. You could buy and sell every day. If you buy gold for four hundred dollars and then sell it for six, you will have made two hundred dollars. You can then hold onto your $600, wait for the price to fall, and do the same thing all over again for a larger amount of revenue.