Investors who try to succeed in a hurry run the risk of hurting themselves. Volatile penny stocks or cryptocurrencies can go broke as quickly as they can go riches.
Building a successful investment portfolio is more like preparing for a decathlon. When you have a complete set of skills, you don't have to win every competition to get ahead. Sometimes it's not about winning the top prize. In difficult market conditions, it can be a question of preserving capital so that it does not lose its purchasing power.
In difficult conditions, the bet on gold (and silver) can pay off, and not just the desire to make paper profits in the financial markets. Physical precious metals do not put a strain on the portfolio, but offer more opportunities to meet the investor's goals - especially in times of rising inflationary pressures and economic uncertainty. The gold market started trading in August this year with an uncertain short-term development. Prices are currently between 50-day and 20-day moving averages.
This type of squeeze can result in a significant reversal of direction when prices cannot break out either up or down. In mid-April, prices fluctuated between tapering moving averages before breaking higher, leading to a multi-week price rally. The upside breakout of the gold market will significantly increase the value of Olympic gold medals, although in reality they are mostly made of silver.
According to the International Olympic Committee, gold medals at the Tokyo Games contain only 6 grams. yellow precious metal as a coating. Moreover, they contain 550 gr. silver. Based on current spot gold and silver prices, one Olympic gold medal is worth approximately $ 800. Of course, Olympic medals have sentimental and collectible value. But this is a subjective value, so it is difficult for the market to determine their real value. Anyone who dares to plunge into the world of collecting runs the risk of paying too much for something whose properties may be deliberately exaggerated by the seller.
Investors in gold bars prefer to pay only for the cost of the work of producing them, rather than for sentimentality. They avoid trading in collectible medals and supposedly “rare” coins that are sold at overpriced prices and with huge spreads between buy and sell prices. To win a race, you first need to start competing. Those who own collectible and rare items of gold and silver play a completely different game, which is very different from the regular bullion and coins, which are priced in the spot market.
If the ultimate goal is to defeat inflation and, over time, get a real increase in the purchasing power of their capital, then the owners of physical precious metals will have to wait a long time. Markets are inherently unpredictable from day to day. Only long-term investment in gold allows you to cover the difference between the buy and sell prices (spread) and still earn a good profit.