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How high will gold go?
About 10 years ago I wrote about buying gold and silver as an investment. Since then the price of gold has gone up 175% in $CAD.
That’s a bit more than 10% return annually. But for most of the 2010s and early 2020s the price of gold did not make any big moves. In fact if you had bought an ounce in 2012 and sold it 10 years later in 2022 you would have only broken even as the price was the same. 😅
Here’s a monthly chart of gold in USD.
It wasn’t until this year that gold’s price broke out of a trading range and is now climbing higher than ever.
That’s the thing with precious metals. You have to be patient because although the price doesn’t explode to the upside often, you don’t want to miss it when it does.
But I wouldn’t be surprised if we see a pullback now. The blue arrows in the chart above measures the same price movement. The market likes to move in twos. And gold has recently reached its measured move target.
Either gold will continue to move higher from here, or it will make a correction and a top will be put in around this current price level of US$2750/oz. The latter is more likely the case because even if gold wants to move higher, it doesn’t have to be in a straight line as somewhere along the way some people will be selling to take profits, putting downward pressure on the price.
The one issue with gold is that it doesn’t produce any yield. That’s why it has to make up for it with price appreciation. 🙂
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Random Useless Fact:
According to Intuit Credit Karma, the younger generations feel they are behind their peers financially. One cause could be more social media usage.
Contents from freedom 35 blog. (www.freedomthirtyfiveblog.com)