Long term there's only one direction for Gold, up.
Everyone needs to understand how money is created, how & why it comes into existence.
Money = debt.
Money is created through debt.
Debt is needed to create money.
The only reason every Australian citizen has money in their wallets is because it was created through debt. Through the actions of central banks that print money out of thin air & the fractional reserve banking system that all banks operate under.
Debt is engineered into the system & can never be reversed. Because as people pay off debt, ever increasing amounts of debt has to be created so more money is pumped into the system. That means the value of your currency will slowly be debased over time as no one can pay off all the debt because if the debt disappears so does all the money.
There always has to be more debt than money circulating in the system otherwise the global financial system breakdown.
Since most of the average citizens wealth around the world has been slowly evaporated away over the last half century through inflation & wasteful government programs, & everyone has loaded up on as much debt as they possible can. It now means governments have to take over where the private citizen can no longer bear the debt load. That means an ever increasing money supply by central banks & governments via QE to keep the debt clock ticking over so there's more money being injected into the global financial system to prevent deflation.
Tough to get your head around unless you do your research.
The consequences of these actions is the constant debasement of your currency & an ever increasing Gold price.
Gold doesn't just only go up because of investor sentiment, it goes up because the value of the currency you're using to buy Gold is going down.
If you're trading Gold over a few weeks or months then the daily movements in the gold price is of concern, short term.
If you're buying gold in your teens or 20's & don't plan on selling it until you retire? Then you're guaranteed to make money!!
The Gold price was $20 an ounce at the turn of 1900's, it's $1,800 today. Not because of traders, but because the ever expanding money supply that's built into the system has devalued the currency you're using causing the price of gold to move higher.
Don't buy gold, sit & look at the price where it's trading at all day because you will lose your mind. Buy gold, secure it safely, don't think about it, don't watch the gold price, just let it sit there & sell it when you retire or need the cash.
