The Ups and Downs of Gold in the Market

Demand for gold has remained rather steady for the past decade and in general has increased in value.  But now, in the last couple of years, there is concern as to where the value of Gold prices will go next. There has been a shift in the countries that are buying gold–namely India and China have become huge purchasers of gold. Here you can read more about the history and significance of gold in the past.

There are some that believe the price of gold has stalled due to the emergence of the ‘crypto currencies’ like Bitcoin and Litecoin.  It seems that the value of gold has decreased as the value of these crypto currencies have increased. Could it be that the demand for precious metals (once the basis for the value of different countries’ net worths) is giving way to the digital currencies?

Investors are always looking for safe havens for their money, and places where they can get the best returns. It is hard to imagine that investors and speculators will see more value in a digital currency than they will in gold, but anything is possible.  Here are some interesting and useful statistics on the significance that gold has had in the global currency market, both today and in times past.

The ups and downs of gold market infografic

Click here to view an enlarged version of this infographic

Conclusion

So in the end no one knows for sure where gold price will go…

So, what do you think about gold direction?

Please share this infographic with your fellow gold traders.

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About the author

Rimantas Petrauskas

First I am a father, a husband and then the author of the book “How to Start Your Own Forex Signals Service”. I am also a Forex trader, a programmer, an entrepreneur, and the founder of ea-coder.com Forex blog. I have created two of the most popular trade copiers and other trading tools for MT4 that are already used world wide by hundreds of currency traders.

5 Comments

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  • Hello Rimantas,

    I trade every day with Gold since many years. But manually trading with Gold is difficult and I trade only with price action what I see,
    not long term. Every day + 30 – + 60 Pips (600 – 1000 Pips monthly) is enough by trading with Gold.
    Greetings Roswitha

    • HI Roswitha,

      Wow sounds like you do very well trading Gold. Do you have any particular strategy when it comes to trading Gold. I’d certainly be interested to hear more.
      Im currently trading S&P Eminis, but only making very small profits unfortunately.

      Cheers
      Clint

  • Dear Rimantas,
    somehow it wasn’t possible to save my text on the website that you have linked to me. Anyway I will do it here and try to give you my sense about Gold. I don’t trade Gold. I trade currencies. But if I buy Gold I’d buy it physically.
    As you surely know that Gold had a tremendous run-up in prices in the years between 1999 and 2011. Gold peaked at $ 1.921 in September 2011. After we have been in a correction period since.
    I think, that this correction was justified for a certain percentage. There was too much speculation and enthusiasm leading to the peak in 2011. For a certain percentage there may have been some
    market manipulation as well.

    Now, I think that the correction has probably come to an end, because if anything, the fundamentals are much better today than they were at the time during 2011, but the price is down.
    If you follow the principal „buy low and sell high“, well, just a few investors follow this simple principle. Generally it is strange, when prices are low, nobody wants to buy.

    When I compare the price of Gold to the S&P the price of the S&P is up substancially since 2011 and Gold is down. So if you compare the performance of Gold shares to the S&P we can say it has been
    disatrous for Gold shares during the recent two and a half years. I think the price of Gold is actually one of the few assets that are relatively inexpensive. The Gold shares are at a very low level. The time should be right to buy Gold shares now. Better buy Gold physically.

    Torsten Kroeger
    tkroeger1@me.com

    • Dear Torsten,

      I get your point. It makes sense to buy Gold physically, but that does not include leverage. I agree it is less risky to buy Gold physically, you never get a margin call 🙂

      Thanks for sharing.

      Rimantas

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