As is often true in times of economic instability, alternative investments appear more desirable and specifically, gold investment has caught the eyes of many people looking to preserve and increase their wealth. With many of the world's largest economies struggling significantly for the past several years, people are seeking ways to safely invest money outside of traditional financial markets.
Information on gold bullion investing can be found on websites such as Bullion Vault, which allows you to buy any amount of this precious resource as you please, store it safely and securely, and withdraw or sell it at any point in the future.
But is it a good time to start investing in gold?
Unfortunately, this is not question with a straightforward yes or no answer. There are an incredible number of different factors that can potentially affect the price of gold going forward, which makes this a very difficult market to predict in precise terms. However, by examining some trends in the gold market from the past, as well as some current economic trends, we can at least come to some general conclusions about gold investment strategy moving forward.
Perhaps the most important factor of note with regard to history is that the price of gold has risen steadily for ten consecutive years, according to Trustable Gold. In many people's minds, this makes it a safe bet that the price will continue to rise in 2013, which generally indicates a strong market worth investing in. However, it is also worth noting that over the course of 2012, the price of gold has not quite performed as strongly as anticipated.
Since the beginning of 2012, the price of gold has risen roughly $250 U.S. per ounce, to a price that is currently at about $1,780 per ounce. Given that many projected the price to be closer to $2,000 per ounce by the end of 2012, it can be said that while the market did show growth, it has not performed as strongly as expected.
The main reason for this somewhat slower growth is perhaps the unexpected strengthening of the U.S. dollar, which can sometimes have an inverse effect on the price of gold.
However, in the greater scheme of things looking forward there are a number of other factors to consider. Many European economies have struggled mightily this year, which has allowed the dollar to gain ground on the euro; the United States may or may not have a new president in 2013, and this outcome is sure to have massive economic consequences. Factors like these may well determine the strength of gold going forward.
However, if you trust the last ten years as an indicator, it seems likely that the price will continue to rise in 2013, though it just may be a somewhat modest rise.
This is a guest post on behalf of BullionVault, written by freelancer Jack Whitley.