How high can gold price go?

How high can gold price go?

I just read in visualcapitalist.com that 0.5 kg of gold is now valued at US$40,336 (RM176,383). Divided into per gram, it’s RM352.77 and thus, a 2gm gold earring may cost us easily RM800 or higher depending on how much the workmanship charges are. Plus which gold shop brand we go to. Some are more premium than others yeah in case you did not know. This is why I think guys also think gold earrings look so ‘old-fashioned’ and they will prefer to buy the non-gold ones instead. Haha. Do refer to the below image for some understanding.

Info Source: https://www.visualcapitalist.com/gold-bars-1-million-dollars-record-gold-price/

Gold is an amazing hedge against inflation?

I guess gold will always be valuable and as inflation continues to shrink the value of the currency we hold, thus the price of gold will move upwards to compensate for the loss in value of the currency we hold. Gold price trend over the past 50 years, what has happened?

It’s not true that gold prices only move upwards. There are times when it is down from its new high. On a longer term however, the movement is upwards. Thus, if we have a huge holding of gold, the holding power matters. If we sold when times were not good for gold, then we would have lost the potential additional profit opportunity of today and maybe tomorrow?

Can we buy gold and keep?

Yes, it’s quite easy. Buy gold earrings for your wife every year. After 30 years you will realize that the value of the earrings has appreciated. Of course, need to be genuine gold lah. However, an even easier way may just be the gold accounts via your favorite bank. They usually have the Gold Account which you can just login and buy by transferring some funds from your savings into the gold account. Whichever you prefer, just do it.

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