Gold is widely regarded as a relatively safe investment to hold when the market and economic times are turbulent. You see, during an economic downturn or recession, the inflation rate can rise beyond the interest rate. When this happens, you start to lose money holding stocks.
It is at this time that investors turn to more stable assets. Top among which is gold. Gold is preferred over other precious metals because it has a long history of performance. As more investors turn to gold as a hedge against recession, they drive the value up. So, if you want to hedge and diversify your portfolio, gold is a good choice.
That said, just like any other investment, you want to keep up with gold prices in the market to gauge how investment is doing and, more importantly, find potential trading opportunities. So, how exactly do investors track live gold prices?
Live Gold Prices Tracking Platforms
While gold is relatively stable as compared to, say, stocks, its prices still fluctuate daily. That is why as an investor, you want to look up gold prices regularly. Luckily, different websites provide live updates on gold market prices. Apart from the live gold prices, they also track the opening and closing rates for different karats, right from 14K to 24K, and purities.
Since most of these platforms are run by gold bullion sellers, you also get other useful investing features, such as a money-to-gold conversion calculator.
What Determines Gold Prices?
Now, you know that gold prices are constantly changing. So, what exactly pushes the prices to go up or down? The main factors which should help you understand how to invest wisely in gold include:
No doubt, gold is very valuable to most people. Apart from its importance as a store of value, it is also used in a wide range of industries, including jewelry making. Now, when the economy is shaky, more people turn to gold, so the demand for it, in various forms, drives the price up. With less demand, the prices fall.
Gold is also subject to the law of supply. The quantities mined yearly are usually not enough to meet the demand, which is why it is considered a precious metal. Still, the market may experience lower supply than usual if the quantity mined is less than was expected. This pushes the prices up.
● The US Dollar (Fiat Money)
Gold and the US currency usually share an inverse relationship. When the value of fiat money goes up, that of gold falls. Conversely, when the US dollar loses value, people look towards gold, and its value increases. That is why as an investor, you want to track gold prices along with the dollar’s performance against foreign currencies.
Protect Your Assets and Build Wealth with Gold Investments
If you have not added gold to your portfolio yet, it is time you did. Gold stores value well, have a long performance history and, more importantly, are easy to buy and dispose of. As an investor, you can track price changes in real-time on your phone or PC and make investment decisions on the go.