The Blacklist

Investing in Gold and Other Metals

Is now the best time to invest in gold, platinum, or other metals? Worldwide, the price of gold has been on the increase for the past year. But does that mean this trend will continue and an investment in gold today will make a profit tomorrow?

The early January launch of exchange-traded funds in the United States has brought the price of precious metals higher; not only gold but platinum and palladium. Investment interest has been keen ever since and is expected to remain that way for the foreseeable future due to the exchange-traded funds spurring investment demand. Expect the precious metals market to take a bullish stance while gold levels out due to consistency of value in the US dollar.

Recently spot platinum traded at $1,626 USD per ounce and spot palladium reached a high of $457.50 USD. These figures represent the greatest increase since 2008.

Gold was trading at $1,135.60 per ounce with futures valued at $1,135.80. This is a 2.3% decline. As the US dollars levels out in value, demand for gold tends to decrease since the metal’s benefit as an alternate asset also declines. A change in the Chinese monetary policy requiring additional bank reserves also affected the price of gold.

The demand level of gold is at $1,100. As it declines to that price, the largest investors in the market are Indian jewellers. A good buy is anything less than $1,200 USD.

So is now the best time to invest in gold or other precious metals? The short answer is yes, but only if you have the proper investment variables in place. There are no guarantees in the stock market and global economies could take a sharp swing in either direction in upcoming months.

If you are interested in investing in gold or platinum, first get a good, solid foundation to help you weather the vagaries of the Australian stock market. You must be prepared in order to make sound investments and the advice you get from a true professional could mean the difference between failure and success.