Earlier in 2018, the price of gold was at its highest, i.e. $2,000 per ounce. Gold is just like many other assets. Its price fluctuates based on supply and demand. Additionally, the mining industry's sustained success to demand.
What Drives Demand?
Demand is typically influenced by two factors: manufacturing and jewelry. For years, investors who purchase gold and other precious metals have witnessed gold prices increase steadily. From the facts of gold price rises to capital gains benefits, the appeal of precious metals is here to stay.
What Created the Hype of Gold's High Price?
When investors are unconfident about traditional assets, e.g. shares, stocks, cash, or property, they tend to pump money into precious metals. You see, the value of precious metals is not directly proportional to the overall state of the economy. That's why many people turn to gold when the economy is tanking, e.g. using gold as hedge.
What Does the Future Hold for Gold?
It's pretty evident that there is an upward trend. However, answers may vary depending on whom you ask. While it is still impossible to accurately predict how well financial markets will perform in the future, speculators predict that gold will reach a value of USD10,000 per ounce. One way to uncover clues at what will happen next is to study historical gold prices.
Gold investments have an extensive history of sustaining long-term growth. It has successfully guarded investors' money against inflation over the years.