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4 Things Every Investor Needs To Know About Gold

By    |   Sunday, 12 July 2015 10:05 AM

Gold can be different things at different times in the marketplace — volatile, profitable, secure and an unwise investing strategy, depending on your taste for risk and also on what is going on around the world in politics and the economy.

Here are four things you should you know before dipping your toes in the gold investment pool.

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1. It's Fickle
Gold markets are notoriously up and down as economies sputter or ignite, or even as political crises envelope a region. Watch the news if you invest in gold.

2. It's a Safe Spot in Down Economy
Investors see safe haven in gold when inflation starts to rise, its value inverse to that of the U.S. dollar. For those looking for long-term strategies, gold is now considered by some as a good bet, MarketWatch reported. Take a hard look at gold markets when the Federal Reserve makes an expected increase in interest rates later this year.

3. It's Easy to Try It Out on a Small Scale
If you're risk averse and want to dabble, you can easily purchase a share or two of a gold ETF (exchange-traded fund). Traded like stocks, ETFs have fast liquidity and low costs of ownership. It's a quick way to get some gold into your portfolio and is increasingly used by investors as a safe investment and protection, The Wall Street Journal noted of the emergent relevance of ETFs.

4. Demand Remains Stable
World demand for gold remains solid — a 40 percent increase over the past 40 years, MarketWatch noted of its endurance — as many central governments continue to snap it up. Global markets for gold jewelry, also remain high, according to the World Gold Council, showing its cultural importance in that arena. In the last week, China set up a massive gold investment fund, seeking to show off its heft in the global gold market, MarketWatch said.

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Gold can be different things at different times in the marketplace - volatile, profitable, secure and an unwise investing strategy, depending on your taste for risk and also on what is going on around the world in politics and the economy.
gold, investor, things to know
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2015-05-12
Sunday, 12 July 2015 10:05 AM
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