Investing in gold and the gold price

Gold has often proven to be a good investment. Physically in bars of gold or on the stock exchange are part of good asset management, but what will the price do? The gold price has previously gone through 1,400 and 1,800 dollars. In 2020, the gold price was in a range between $1,500 and $2,100. According to experts such as Willem Middelkoop, the price of gold will rise to 5,000 euros and that could well be the case with the tensions in the Middle East and other uncertainties worldwide. That’s why everyone wants to invest in gold. Please note that the gold price of physical gold is in dollars. A higher gold price is of course especially interesting for you in euros. You want the gold price to also rise in euros. Gold is also a safe haven in turbulent times. Gold can easily be purchased via the internet or via RBS’s physical gold tracker. Gold jewelry is also interesting.

CONTENTS

  • Willem Middelkoop and the gold price
  • Gold price and the dollar
  • Gold price 2007 – 2021
  • Gold price 2019 and 2020
  • Investing in gold, the most important motives in 2020 and 2021
  • Gold and inflation
  • Buy gold
  • Highest savings interest
  • Key lock

Willem Middelkoop and the gold price

The famous Willem Middelkoop has been saying it for a long time: buy gold and do it now. It is also clear that this will not happen in a straight line. The $1,700 mark was passed in 2012, after which the price fell sharply. But there is hope, in 2019 we already saw the $ 1,550 again and much more is potentially possible. It has even been indicated that the gold price could rise to 5,000 dollars (Middlekoop forecast in 2017). So a big profit. This is the gold price per troy ounce: 31.10 grams. You can easily buy gold bars via the internet so that you too can benefit from the gold price. Gold generally does well when confidence in the world declines and people look for a safer haven. The gold price rises in turbulent times.

Gold price and the dollar

The gold price is in US dollars . This means that if the dollar falls, the gold price in dollars automatically rises. For us, an increase in the gold price is of course especially interesting if that increase in the gold price also occurs in euros. Buy gold for the right reasons and at the right time. Sometimes there is no movement in the price, sometimes it becomes very clear that a further increase is obvious. Since November 2007, the gold price has been in a trading range of $800 to $1,550 for a long time. It also turned out that the gold price was sometimes even relatively low at the height of the credit crisis. That doesn’t mean that if you bought at the right times, you couldn’t make a profit. Because that was of course possible, but not nearly as massive as many thought and think. Some striking figures at a glance.

Gold price 2007 – 2021

Gold price 2007-2021

A sharp peak in the gold price in August 2011, after a steady rise, but then down and up again, with a lower top in September 2012 and a bottom of 1050 euros on December 2, 2015. After that the range has been between 1,000 and 1,300 dollars . This didn’t all happen in a straight line, but in waves. We see a similar picture in the following years.

Gold price 2019 and 2020

Nice historical overview, but interesting for traders is of course gold and the gold price 2020 and 2021. In 2019 there were remarkable developments in the price. The gold price rose above $1,550 in June and July 2019, an increase of more than 18% compared to January 2019. In 2020, the price has also risen sharply since January 2020 (about $2,000 in September 2020). If there is unrest, the price may rise even further.

Investing in gold, the most important motives in 2020 and 2021

Anyone who wants to invest in gold in 2020 or 2021 does so because:

  • You think that gold is becoming scarcer and that central banks will not sell gold en masse due to a lack of money. Whether this will actually happen remains to be seen. In the past, central banks and certainly the Dutch Bank have dumped many gold reserves on the market.
  • You expect unrest, for example a war in the Middle East or closer. All kinds of political problems are conceivable. Also cutting off gas supplies from Russia or, for example, preventing or slowing down oil production in the world. This will lead to great unrest and thus speculation in gold.
  • The economy will perform well, which will increase the demand for gold significantly. China and India love gold and gold jewelry.
  • Gold mines collapse or something like that, reducing the supply of gold. In South Africa we clearly see that the supply of gold is becoming increasingly difficult. The gold can only be extracted there through more costs and more effort.
  • The stock markets are collapsing due to a country crisis, a further escalating trade war or otherwise. Think of the previous problems with Greece and the commotion over the euro.
  • The European Central Bank is buying more bonds and printing more money in an attempt to fuel inflation. This is well underway in combination with bond buying.

Gold and inflation

Gold always retains its intrinsic value. With gold you have something in your hands and with paper money you just have to wait and see. It is therefore assumed that the gold price can withstand inflation and therefore at least maintains its price. In practice, it appears that one period improves somewhat in another period and it is also the case that catch-up is made. Then the price is stable for a while, but the gold price rises sharply in a short time. Unrest in the world is also good for the gold price.

Buy gold

Making a profit with gold is all about the right timing and the right motivations. Solely fixating on the gold price in dollars is then a bad advisor. Short journeys can often be made with gold. But that means you have to keep an eye on the state of gold. There are also all kinds of investment products with which you can invest directly or indirectly in gold. Think like the turbo, futures on Nymex, Cbot or Tocom, trackers or ETFs. Or you buy mining shares, index followers, the BlackRock World Gold Fund. There are plenty of possibilities. Or you can buy gold bullion. In turbulent times, gold can hardly be found on the stock market. Gold jewelry, gold coins and old gold yield more than ever. Some argue that bitcoin is the new digital gold, but unlike gold, the value of bitcoin fluctuates very strongly. Gold therefore seems to be a safer destination for your money.

Highest savings interest

Less spectacular, but possibly interesting if you want to spread your money, is choosing term deposits with attractive savings interest rates. Still, as long as savings rates are low, gold and silver are probably a better alternative.

Key lock

In people’s experience, gold is almost magical. Everyone wants to have it. I’m curious to see how far that magic will take the gold price. The turbulent times on the stock market of course help, because gold remains a safe haven. Also in 2021 and in the years to come.

read more

  • Buying gold for advanced and beginners