Precious Metal Outlook
All over the internet, there is reference to 2015 being the year for gold. All the “sell your gold here” places are promising to pay big money for old, unwanted, broken gold jewelry. It is a trend that is going to continue this year as it has in the last several years. However, what happens after that is a mystery to some. Will gold increase more in value in the near future? Is it worth holding onto for another year or two? Should you sell it now while the market is ripe and ready for it? There is potential with either option.
Why Gold Is So Good to Have
Gold has always been popular. It has a history attached to it that began back when the gold rush was upon us and everyone was digging for it. It gained value then because it was a rare item, even though there was gold mines that were impressive and productive. Gold has fluctuated in value throughout the time since those days, but it has never completely diminished in value and most people are not sure why. However, the answer may be simpler than you think.
When you look at the U.S. dollar, it is the most common type of currency nowadays. Its value goes up and down according to how much money is floating around in the economy. If people make more money, the value of a dollar decreases because the cost of living goes up. Gold does not have this same issue. Its value is always there, regardless of what inflation hands us. Even after World War II, gold stayed valuable. That is why many people choose to hang on to their gold. It is a safe way to preserve wealth.
All of this is due, in part, to the fact that gold is in limited supply. There are still miners who seek gold. If one mine runs out of gold and it is no longer productive, a new mine can take as many as 10 years to be set up and minable, with most taking at least 5 years to become productive. Even with this limited supply of gold readily available, India is a nation that uses a lot of it. China also uses gold bars as a way to save their money.
Will Gold Gain?
When compared to stocks, if you look back through history, the 70s were great for the gold market and not so great for stock holders. The 1980s and 1990s were the other way around. In 2008, when the stock market crashed, gold became more popular. We are still riding gold’s popularity now, but that does not mean that it will stay that way.
There are some people who predict that with 2015 being the year for gold, the gold market will soon be flooded. When this happens, some feel that perhaps silver will become more valuable, to some extent. The good news is, though, that as proven by history itself, gold will come back around and become again what it is today. Perhaps becoming even more valuable in time.