If you have money sitting in a savings account or a large sum which will be coming to you soon, have you considered investing it? The saying that money breeds money is certainly true and having cash sitting around is not a great idea. The best course of action here is to use the money that you have to grow more wealth, doing so through investments. Today we are going to look at one particular investment opportunity which many people have profited from, and one which you can too, that is the precious metal of gold. Naturally, with any investment, it is vital that you understand everything that you can about the asset and the market which impacts its price. When it comes to gold, much as been said about using super cycles to read the commodity, so let’s have a deeper look at how you can amass the knowledge that you need.
A super cycle is a very simple measuring tool which covers a long period of time when a commodity such as wheat, oil or copper, are at very heightened prices. A super cycle is over when the price drops back down to realistic levels, or worse still, it crashes. Occasionally, as is the case with gold, a super cycle can also refer to a long period of low prices, before picking back up again.
State of Gold
If you get the live price of gold, you will likely see something like $1,200, a long way from when it peaked in 2011 at $1,900. Since that time, gold has crashed a great deal and is slowly but surely coming back up in price. Wells Fargo Investment group suggest that gold will stay in this super cycle for another 5 years before the price gets anywhere near its 2010/11 figures providing a good opportunity for investment.
Learning About Prices and Super Cycles
As a first time investor there are a huge amount of resources which you can use to learn more about super cycles, particularly the gold super cycle. One of the best ways of doing so is to follow industry experts and take their opinions on it, when doing so it is vital that you take a huge cross reference of different advices, and then use those to make up your own mind. Alternatively there are a great many tutorials on sites such as YouTube, which you can use to follow and track the live prices, and predictions for the future. Finally another way to boost your knowledge and grow in confidence, is to use a simulation to get started with investments. These simulations will give you X amount of money to invest, and then you can play with this false money, but investing based on realtime prices. Using these simulations are the best way to prepare yourself for the real market.
Gold has been making money for people for many years now, time to get in on the action.