Matters of money are on our minds daily. But, what exactly is money – the idea we so often entertain? Simply, it is a means to store the notion of value. In other words, when something is a necessity, physical, and rare, it is regarded as money. Nevertheless, people often mistake money for currency. For example, the Canadian dollar is currency, while gold is a form of real, tangible wealth. Of course, by the looks of it, anything can be “money”, but the ones worth noting stand the test of time. These vehicles of money are known as precious metals. Throughout the millennia, the most well-known precious metal has been gold. It continues to leave its footprint in our human history every day through its exchange, saving, investing, and safekeeping.
Why Is Gold So Popular?
There is an abundance of metals on this Earth. Gold happens to be one of them, yet it has found to be best suited for its assigned task. That job is to retain the value we work for in life. First off, gold is sturdy and does not wear down quickly by any means. That gives us the freedom to not worry about if our wealth is secure from commotion such as melting away or evaporating into thin air. Besides, gold allows us to combine it into larger pieces or cut it up into smaller portions – all still while completely retaining its value. Furthermore, it is recognizable worldwide. Social acceptance is a breeze when we can recognize it anytime, anywhere.
Indicators of a Bull Market
Investing into gold might be on the best financial decisions you could make in your life. It has proven itself through history and is projected to continue upward and onward this year. These figures point directly to a bullish case for gold in 2018.
Domination of the S&P 500 Index
From the start of the century until now, the value of gold has surpassed the market more than two-hundred percent. It has been a fruitful past decade for this precious metal. From its price rising four times, and the market’s valuation almost reaching a multiplier of two times, a clear winner is determined.
Stocks Versus Gold
At the end of 2017, a prime opportunity has been placed in the laps of investors everywhere. Now, gold is vastly underrated in comparison to stocks. Prices showed to be incredibly compressed as the year came to close – a perfect indicator for a bull market to bust out.
Dwindling Lifespans for Gold Mines
More than ever, explorations for gold have been coming to a dreadfully slow pace. Gold mining deposits are becoming scarcer by the year. Of course, for mining companies, this poses a threat to business. But, on the other hand, a strong chance to invest in gold has presented itself. With the lack of gold rising, the value will increase as well.
Shift in Gold Prices
Although the bull market for gold is only beginning, there is a much room for price enhancement still. Studying previous markets, this could be one of the most significant surges in gold’s valuation in modern history. The shift happened at the end of 2016, and 2017 was only the start.
World Equities at A Dangerous High
Either way, if the $80 trillion that make up global equities go up or down, gold is in the superior seat. As we go deeper into a bull market, the price for will continue to escalate. Similarly, as in the economic crash of 2008, gold will still retain it is value for the most part. In comparison to other investments, gold is expected to come out on top.