Gold Investment: The Value of Physical Possession
Investing in gold is a popular strategy, particularly with the recent price rises. As of Friday, gold prices climbed to 1703.25 per ounce, closing in on the 1700 target predicted in the previous week. If the price breaks through the key level of 1703, it could push gold towards $1770. Let's delve into the fundamental and technical analysis, and then explore why holding physical gold is fundamentally different from simply investing in it.
Fundamental Analysis
According to global health data, the coronavirus pandemic has claimed 100,000 lives worldwide, with no sign yet of the peak. The European Union disease surveillance agency highlights that Europe is still far from reaching its outbreak peak. This dire situation is pushing governments into adopting larger stimulus policies, which are expected to support gold prices in the coming months.
Technical Analysis
The positive trend in gold prices is expected to continue over the next few trading days. Currently, gold prices are above the 1670 threshold, with a first target at 1700 and a second target at 1770. Traders are advised to make short positions at 1685, with a target at 1670. Then, for a long position, enter at 1670 with a target of 1700.
Investing vs. Holding Physical Gold
Gold itself is not an investment, but rather a commodity. True investment implies growth, whereas holding gold is about maintaining and preserving value amidst uncertainty. Just because a mine is considered an investment, the gold extracted is merely a commodity used in jewelry, electronics, and other industries.
The physical possession of gold is central to the mindset of "PM nuts," a term used for those who staunchly hold and physically store gold. PM stands for "Physical Metal," and these enthusiasts refuse to entrust their gold to banks, seeing the risk in the banks selling your gold and charging for storage.
Holding gold underlines a belief in a looming economic collapse, making it a valuable asset for rebuilding efforts. This act is seen as a patriotic duty, a strong stance against economic unpredictability. So, while it may sound like a radical idea, many find the security and stability of physical gold a crucial aspect of their investment strategy.
Where to Get Expert Training
For a thorough understanding of gold investment, you can equip yourself with the training available at Gold-Eagle: Gold Price Charts, News, and Analysis. These resources can teach you everything you need to know in less than a week. Understanding both the technical and fundamental aspects of gold will help you make informed decisions and navigate the complex gold market.
Explore and master the intricacies of gold investment at Gold-Eagle, where knowledge is the key to success. Remember, in an uncertain world, physical gold can be a reliable anchor of value and stability.