For millennia, people have been fascinated by the way gold does not discolor and its unique color.
Unfortunately, from a technical point of view, gold is useless, except for coating electrical contacts, and it does not discolor or lose its conductivity. The metal is too soft and has too little tensile strength to be used for anything other than necklaces and rings.
But as an investment, gold is a completely different story. Why do people buy gold? The intrinsic value is zero.
The gold price fluctuates mainly depending on people's fear of the future. The price of gold rises when a war threatens.
When the economy is doing well, inflation is low and employment is high, gold prices will fall. Given these conditions, there are likely to be investments that will produce better returns than holding a gold bar.
People usually buy gold out of fear of inflation and catastrophic stock price drops in the context of war and political uncertainty. They buy gold because they believe it will keep its value.
Historically, gold has some value, but stocks can lose all of their value overnight. However, if you buy gold at high prices because of the war, you will almost certainly lose money if you sell at low prices.
Conclusion- Buy gold when everyone says they want to invest in the stock market. Sell money when it looks tough and there are lots of buyers.
When buying gold, understand that it is a risky investment. The price of gold can go down. It can take years before you can sell gold for a profit.
Until recently, in many countries it was forbidden for individuals to hold gold bars and bullion. However, individuals can purchase gold coins and other items. South African Krugerrand gold coins were created to take advantage of this opportunity to earn the foreign currency very much needed for the country in the year of the sanctions.
Today you can buy gold, silver and platinum coins of various denominations such as Canadian dollar, US dollar, British pound and sovereigns.
For a deeper and broader discussion of this and related subject matter, refer to our eBook How to Buy Gold Online and Safely Store Offshore. Here you can view the eBook.