So, who are late in buying gold and silver? Well, most of us normal people are late in buying gold and silver. Most of us don’t stay UpToDate with what the central bank are doing and the demand and supply of these metals.
So now you might be wondering am I too late in the game. I will say you are not early but it is not too late either.
So why the gold price is rising:
There are many reasons why the price of gold is up and the most important reason is Geopolitical tension. When the world is in chaos (not literal chaos but facing problem), tension, war or people lose faith in their fiat currency, then there is only one place people go to protect their asset and that is Gold. The value of gold is same throughout the world. So, you can sleep at night with peace.
In the present situation there are few other reasons why the price of gold is up. Central bank of India, China and Turkey are hoarding gold like never before creating a liquidity squeeze in the market. There is that tariff war, war between Russia and Ukraine, USA attack on Venezuela, USA demand for Greenland, tension in the middle east and so on.
The production of gold does not increase just because there is demand. The production of gold remains the same throughout the year. To increase production, you will need to find new mines that will takes year and years that is if you are lucky enough to find it. Most of the mines that are working is already producing to the best of their capabilities.
You might also ask who is the top gold producer in the world. Here is the list 1. China 2. Russia 3. Australia 4. Canada 5. United states. But here is the thing almost all the gold produce in China and Russia stays within their border suck in like a blackhole.
If China and Russia are hoarding their gold, you might ask who might be supplying. The answer is Australia, Canada and the African region specially Ghana. Australia is the world most important supplier.
Now you might ask how long shall I keep holding or when to sell?
So, I would say keep it as long as the world is in tension. Sell it when the world calm down. Also keep UpToDate with the news and movement of gold. Some can keep it as inheritance for your children.
Note: – I am not a financial advisor. Do research and make your own decision.