There have been times in history when big financial events seem to come at the rate of one or two a year. This is not one of those times. Every day seems to bring a big piece of financial news that could threaten the trading price of gold. For example . . .
The price of iPhones has just dropped in China, and the trading price of Apple stock could drop. What would that mean for gold prices? iPhones, after all, contain gold.
A trade war is heating up between the U.S. and China, and tariffs are causing worries about trade with Canada. Again, what could that mean for gold prices?
The shutdown of the Federal government has negatively affected the incomes of many Americans. Some of them have reported that they have become unable to pay their rents, mortgages, utilities and other costs. Could their problems cause more widespread anxieties and a downturn in spending among larger groups of Americans? And if that happens and people curtail their spending on jewelry and other luxury items, what would the effect be on the price of gold?
Anxious, Anxious . . . Anxious
If you are a gold investor, are you feeling anxiety about those trends and events? If so, we certainly do not blame you. But we would also like to offer some long-view observations about why gold will remain a solid long-term investment, even if current events cause short-term ups and downs in the trading price of gold.
Overall, the price of gold has remained strong over the years. If you buy stock in a company, that company can go out of business or suffer a crippling loss of income. But can gold go out of business? Never.
The demand for gold consistently exceeds the supply of it. There is a finite amount of it in the world. That sustains demand and supports strong trading prices.
The uses of gold continue to increase in medicine, aerospace and other sectors. Despite being one of the oldest substances in the world, it is also one of the newest. Gold conducts electricity, is malleable, and has other properties that make it a material of choice for many modern applications.
Gold is, and will always be, part of many people’s lives. When people get married, many of them exchange gold rings. When people give lavish or memorable presents, they think of gold. When people bequeath valuables to their heirs, they often give gold. More than platinum, palladium or other more “modern” metals, gold is central to the way people live and what they do.
That’s Why Gold Scrap Is a Gold-Standard Investment
Those are only a few of the reasons why investing in gold remains a wise thing to do – even in a time that seems uncertain. If you have gold scrap that you would like to have tested and refined profitably, call our precious metals consultants at 800-426-2344. Our precious metals consultants are here to answer your questions and provide sound advice.
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