There is indeed a possibility of a decline in the price of gold, investment is always a risk and there are price fluctuations. According to logic, wherewith constant demand and decreasing supply, the price of an object will increase. Therefore, you will be able to see changes in gold prices that are quite significant in days or weeks. For those of you investors who are not in a hurry and like to play it safe, investing in gold IRA companies is right for you.
But before starting a gold investment, let’s get to know more about the all-round of gold, including how to find out the price of gold.
Comparing the price of gold with the price of cattle
A simple way to investigate whether the price of gold is too high to be bought or whether it is appropriate is to compare the price with the cow which is the main meat ingredient besides fish.
Sounds like it’s not scientific, but based on the golden power from ancient times to the present day and hopefully until the end of the day can always be used to buy a cow.
Using the Bretton Woods Equation
If you feel the first way does not make sense, then you can use this second method. This method is more scientific in investigating whether the price of gold is too high. The trick is to use the Bretton Woods equation.
When Should You Buy Gold?
In my personal opinion, I will buy gold when I am ready to invest and have enough capital. Why didn’t I wait for the price to drop?
Because I plan to invest in the long term, so a slight difference in price will not affect. With the tendency of gold prices to rise in the long run, I will almost positively receive a profit.
Even if you buy gold today and then the next day the price decreases, why should you regret it? You don’t intend to sell it right then right? You can still make a profit by waiting for some time.