Gold prices recently set a record of over $3400 per ounce causing investors to wonder if they should sell or hold. As with all trends the phrase “What goes up, must come down” rings true. Yet the timing of investments is a personal decision based on your current financial situation and goals. A year ago, gold was priced at more than $1000 less per ounce than the price recorded on the same day this year. Since the primary goal for any investor is to sell when they can make a profit, it makes sense to sell when the price of an investment is higher than it has ever been. However, if you factor in current economic times and the uncertainty of the stock market, you must wonder whether the price of gold could go any higher.
Gold has always been a popular investment during market volatility because it is considered a safe investment. It has its ups and downs but gold has a history of holding its value over time. In 1999 gold was valued at only $253 per ounce because we had a strong economy. Prices began plummeting during the Great Recession in 2008 then increased during our economic recovery in 2010 and 2011. Prices dropped again in 2020 during the pandemic, then spiked when we returned to normalcy.
What goes up, must come down. Gold prices seem to thrive when the global economy is at its worst. Until the tariff war ends, market volatility will continue, and gold prices will fluctuate. But, since gold is tangible and limited in quantity, experts predict the record high recently set is likely to be broken.