Oh, gold. We have been relying on it since the beginning of mankind when we started bartering goods. It has backed the US dollar for centuries, and has been a hedge against inflation. Financial investors are beginning to see gold as a sound investment, so are they right? Did they make a good decision when they invested in this shiny, yellow metal? Or, have they wasted their money?
In order to understand the future of gold, it is important to look at its past. As we all know, gold has been backing the US dollar for centuries. Unlike the US dollar, gold has not been getting weak or shrinking due to inflation. Paper money is now not even backed by gold; how can it be when we are printing off way more money than we have gold? It’s no secret that in countries all over the world, paper money is decreasing in value.
Also unlike paper money, gold has to be mined and put through a process in order for it to be suitable to sell and invest in. It is a natural resource; once it has been all mined, there is no more gold. What does this mean to gold owners and investors? It means that gold now becomes even more valuable once the gold supply has been depleted.
Over the years, gold has increased significantly in price and value. Over the past decade alone, the price of gold has gone from around $250 an ounce in 2001 to currently $1,600! As time goes on, we can expect the price to increase even more. This means that if you invest in gold now, or have invested it in the past, in a few years it will be even more valuable.
Now, the price of gold isn’t going to increase to over $2,000 overnight. It is going to take a few years; in 30 years, we can expect the price of gold to be well over $2,000. This is great news for those have invested in gold when it was relatively cheap at $250 an ounce. They are going to be receiving a lot of money when they decide to liquidate their assets and sell the commodity. So, gold investors have indeed made a great decision to put their money towards an asset that is only going to get higher and higher in price.