Are you interested in trading or investing in gold, but you’re not sure about the future price of gold or what influences it? Gold and precious metal commodities are all subject to complicated market forces that influence the price. There is no guarantee that the price of gold will rise or decline according to experts’ predictions, although as seen over the long term, gold is remarkably good at maintaining its value, and it has seen several meteoric rises, such as the super cycle that began in 2008.
There are a lot factors that affect the price of gold, some that you will probably be familiar with, and others that might surprise. Political uncertainty is always a driving factor in the price of gold, not so much because of fears about an economic collapse, but because political events like Brexit or international tensions tend to negatively impact the stock market, and investors use gold to mitigate stock market losses. U.S. inflation also tends to drive investors toward gold bullion, and with inflation on the rise, many market watchers predict good times for gold.
Gold is also subject to supply and demand pressures; the global supply of gold is limited by how much is physically mined each year. The global gold supply is facing problems, as exploration opportunities become harder to find and the cost of producing gold is on the rise. Annually, gold almost always experiences a rise in price in the fall, beginning in early September and running until about December. That’s because of India’s wedding season – gold jewelry plays a major role in traditional Indian weddings, with brides draped in gold, and there are approximately 10 million weddings in India every year. India is one of the largest consumers of gold jewelry in the world, and changes in demand have big impacts on the global market.
Another macro-trend affecting the price of gold is a major push by China to increase its gold assets. In addition to buying and holding onto all of the gold produced domestically, the country has been purchasing it worldwide in an attempt to dominate the market. Globally, that’s applying pressure to the spot price of gold.
A good way to get into the gold market for the first time is to buy from an online gold dealer like Silver Gold Bull. When you buy gold, you pay the spot price plus the dealer’s premium. The spot price is the value of the asset on the market, determined daily by the London Gold Fix. Online gold dealers typically have lower costs than brick and mortar dealers and larger inventories if, like Silver Gold Bull, they sell gold nationally. You may notice when you’re buying gold that you cannot pay with a credit card, or that you need to setup extra verifications when you do. You can visit Silver Gold Bull to learn more but the easiest way to buy gold online is by using PayPal. The gold market can be a rewarding investment opportunity if you understand the factors driving the price of gold. Get online today and start investing.