2014 gold

The decline in the stock market has opened many doors for other investment types.

Those who needed a good hedge in their portfolio went for gold, whose value back then was quite impressive.

Gold hasn’t seen bad days in the last thirty years—until 2013.Last year was considered as one of gold’s lowest years in three decades, the last one being in 1982.

Experts are divided in terms of forecasting how the precious commodity will perform this year. Expert Malcolm Burne doesn’t see why people should stop investing in gold:

“(Gold) still remains the best insurance policy around today. When serious inflation inevitably kicks in once more the final stage of gold’s long-term bull market should see gold and silver shares outperforming all other forms of investment and asset classes in quite a spectacular way.”

There are also seasonal changes when it comes to futures trading. Adrian Ash, Head of BullionVault Research, has a different explanation on gold’s drop last year, “Gold in 2013 has done almost exactly the opposite of what it typically does. Crashing in spring, and rising sharply in summer, the gold price has reversed what veteran investors call seasonal patterns.”

Just like any type of investment, a good knowledge on market trends, prices, and trade secrets is crucial for first time gold investors.

Gold is seen to be more profitable long term; those who invested in gold five years ago would still see an increase in its value even when it’s not doing so well, simply because the precious metal would still be cheaper five years ago than it is today.