At the end of August 2010, MarketWatch.com reported that the demand for gold has significantly increased since 2009 (and though not explicitly stated in the article, over the last several years as well).
The article provides interesting insight into the gold market economy.
MarketWatch has reported that since the same quarter in 2009, the demand for gold has risen 36%. They suspect that this “surge” in demand is due to investors “making the switch from buying gold only in times of crisis to having gold as part of a diversified portfolio.”
Gold is now being seen as much more of an asset now because of its “proven ability to not only hold value in times of crisis but increase.” The call for gold in this economy has opened the eyes of many investors. It’s impossible to ignore it with all of the “Sell Us Your Gold” shops popping up everywhere. Having a stockpile of gold is definitely going to be beneficial. The only gamble you have to take with gold is when you should sell it.
The chart below from www.goldprice.org tracks the change in the price of gold over the last 15 years. There is a clear increase in demand.
Though the demand and price of gold has increased, there are still even smaller distinctions to be made. The market changes on a daily and even hourly basis. Another goldprice.org chart shows the fluctuation in the price of gold over the last 30 days below.
As you can see, the day you choose to sell gold is key. If you sold your gold at the peak on August 20th, you would have made significantly less money per ounce of gold than if you had sold September 7th. Every other industry is the same in the stock market: it’s just a risk that you have to take.
If you’re interested in the changing demand and hypothesized gold forecasts, this article and website might be interesting to you. Worth a read!