What is the reason for the skyrocketing gold price in 2023?
1, economic instability
When the economy is unstable, investors will generally choose a more stable and secure investment method, so gold investment is a more suitable choice. Gold is often called a safe-haven asset, which can achieve the purpose of maintaining and increasing value. For example, global economic recession, relative political instability, war or natural disasters may all lead to an increase in the price of gold.
2. Currency devaluation
The price of gold is usually denominated in dollars. When the dollar depreciates, the purchasing power of gold in its own currency will increase, and the price of gold will rise accordingly.
3. Inflation.
Gold is one of the investment ways that can resist inflation. When inflation intensifies, the purchasing power of money decreases, and the purchase of gold will increase, which will push the price of gold to a certain extent.
4. Supply and demand
When the supply of gold decreases and the demand remains unchanged or even rises, the price of gold will rise. For example, gold mining companies have insufficient production or inventory.
Should gold be bought when the price goes up?
Generally speaking, the price of gold is better to sell and you can earn a certain price difference. If you choose to buy, then the cost of purchase is relatively high, which is not very cost-effective. It is suggested to choose to buy when the price of gold falls, which is not only cheaper, but also can wait for its subsequent rise and sell to earn the difference.
Here is a good time to buy gold:
1, off-season of gold
In the off-season of gold, the price of gold is generally low, which is more suitable for buying.
2. Holiday
On holidays, some gold shops will launch some gold purchase activities, so it is recommended to choose a more affordable gold shop to buy.
3. After the price of gold fell,
After the continuous decline of gold, its price is relatively low, and it is more cost-effective to buy at this time.