Why is Gold Plummeting? Sell Gold Boca Raton
Six months ago, the spot price for 1 oz of gold was hovering between $1,600 and $1,700. It looked as if it might hold steady there for the near future. Then, all of a sudden, gold started to plummet. All the way down to where it right now, just dollars above $1,200. What happened? Did everyone sell gold Boca Raton?
Gold is a commodity, but it acts similar to a currency. It’s a tangible item that you can hold, feel, and touch. When you buy gold you are buying a physical item that one day can be collected. In the past, gold has been a great hedge against the dollar. As the dollar grows in value, gold usually falls, and vice versa. This is why after the Great Recession, gold skyrocketed to almost $2,000 an oz while the dollar fell.
But today, the dollar is remaining around the same while gold is falling. Why? I think a lot of it has to do with the dollar relative to other currencies around the world. Even though the value of a dollar isn’t growing significantly, it is strengthening compared to other currencies. And since gold acts as a currency, it is going down.
Another factor leading to this sell-off might just be investors taking profits. A lot of investors have held gold for 30 years. In the past 30 years, even if you sell gold today, it is up over 1,700%. As gold starts to fall a lot of investors get scared and sell gold Boca Raton.
The million dollar question is where is gold headed from here? Is it going to go back to $1,600 or $1,700? It’s hard to predict the market, especially for something like gold. But I think gold will continue to fall in the short term while rising in the long term.
by, Seth Marcus at Boca Raton Pawn
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