Above is the Gold price chart of last 30 years sourced from goldprice.org. Please focus on the points given below arranged in timely manner.
29th January 1996, price of gold hit $404.50/oz and it didn’t see this price again for 2888 days or 7 years and 10 months. It came back to $408.24/oz on 4th Dec 2003.
It was giving average returns till housing bubble crash of 2008 and then it picked up post-crash. 8th October 2008 it touched a low of $732.55/oz and with the optimism of believers of doomsday asset it touched then all time high of $1837.68/oz on 25th July 2011. 2.5 times return in just 2 years and 9 months.
People who bought in sentiment of bull run at a price of $1837/oz had to wait till 21st July 2020 to recover their cost. A long wait of almost 9 years.
Gold bulls came back with crash of March 2020 and started creating paranoia around the world supporting doomsday theory. Big names like Ray Dalio started purchasing gold post-crash and became very loud on supporting the theory of adding half a billion dollar worth gold into their portfolio giving various interviews, influencing common investor to do the same.
Warren buffet too added minor position in gold stocks and without him advertising it became a news. The guru has approved gold as a part of the portfolio and now all the puppets which he handles, without knowing, just copying what he do started insisting gold as a part of your portfolio.
Gold is a momentum asset which revolves around speculation of boom and bust theory. Everything will be finished and those who hold a brick of gold in their hand will be granted the passage to Ark. Some was supporting gold price of $5000/oz as soon as 2021 and people actually bought at $2000/oz.
The message here is, don’t become a pawn in the hands of the biggies in investing world. They can support their prices by flooding the positive information about a particular stock or asset. Ultimate looser will be common investor buying overvalued securities/assets at inflated price and find themselves locked at those high prices, indecisive whether to hold or book loss.
We took advantage of the momentum post March 2020 crash and earned a generous 20% profit in 3-4month for our clients. It’s only possible if you have extra cash ready to capitalize the opportunities and larger part of your portfolio is not at risk.
Disclaimer: I don’t promise any return to any of our client and we don’t sell any financial product to any of my client. We are advice only.
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