What is a gold analyst? Someone who has studied everything there is to study about gold and the financial world attached to this precious metal? There are thousands of self-styled gurus who either for the love of the precious metal, or because they get some monetary gain are biased. The gold analyst can be some gold idealist who really wants to get others obsessed with gold too. Gold analysts are necessary, just as global equity analysts or mining analysts are useful to help would be investors to pick the right companies to invest in. Gurus, analysts, experts are necessary, but they should not take away your responsibility as a gold buyer or seller to collect as much information as you can before you make contact withgold buyers Melbourne
Analysts that have that unyielding, singular focus will cause you to miss the other important elements that affect gold. Remember Gold is just a piece of metal after all. It does not pay dividends and its value is affected by systemic anxiety that may seem irrational at times. A lot has been said about gold, how it has been used as currency through the centuries, how it was replaced by paper money, how its value was pegged to the dollar, how that agreement or gold standard was abandoned. We cannot argue that gold has a lot of useful uses, but for some reason. We are a point where its importance in the financial system is undeniable, yet gold in itself is not money. The question is not whether gold is money? We know what it isn’t, we know what it has been, the question is where are we headed with paper money. Is money going to be commodity rooted in barter or will it become an electronic representative of economic output? With technology advancing as it has been, are we going into a future where money becomes redundant or obsolete?
This is what all the pundits say:
Gold is a safe haven in case of war and economic catastrophes. However, knee jerk reactions have people buying up gold only to incur short-term loses when the hype dies down.
Gold is important because when governments fall on hard times and struggle to service their debts or get over bad monetary decisions, they look to gold. Gold is touted as the best hedge against economic disasters and uncontrollable inflation. But inflation in itself is not entirely a good indicator. Since 2011, inflationary monetary policies have been affecting stocks more than anything. Should we be looking at inflation to determine where gold is going to go?
The demand for gold from countries like India and China will always undermine those economies that try to suppress the gold price. The old demand and supply argument has been used over and over again, especially now with the mining industry indicating that it is getting harder to mine gold out of the ground and that we have reached peak gold. If demand from the east should be driving gold prices higher then the price would have long been above $1,500 instead of hovering around the $1,200 mark. The buy/sell from a supply and demand standpoint is a zero game. Demand is not relative to the supply of gold.
The gold gurus and the so-called gold community want solid reasons for things to happen. The inability of gold to be what they say it should be is never chalked up to “ah well, we might have misread that situation”, someone else is always at fault. The “gold economy” consists of a macrocosm of factors. It’s gold against the stock market, contractions, yield specs, sentiment, declining confidence. The truth is, it’s not as complicated as these so-called expertsgold buyers Melbourneand gurus make it sound. They have made something simple sound like rocket science.
Here is what gold is:
Gold is like an anchor that helps stabilise a ship against different tides.Gold is not something you throw a dice for and hope that whatever comes up will help you win somehow. You cannot rely on hope or inflationary economic theories.
Gold is also not a get rich quick scheme, but it comes in handy to store value during crisis that can be easily offloaded to local gold buyers Melbourne when you need cash.