Price of gold is rising.is it sensible to invest in gold now?will it yield good returns?
Question:
Answer:
Hard assets, like gold, react differently to changes in the economy than traditional financial securities (stocks and bonds). In times of rising inflation or in bear markets, when stocks and bonds may be negatively impacted, gold often outperforms.
Use gold, or other precious metals, as a means of diversification and a hedge against inflation.
you are forgetting the essential rule of investing: buy low, sell high. Gold has been increasing in price, and companies that mine it seem to be slowly digging themselves out of a slump. As per Jim Kramer (Real Money radio show), this might be a good time to invest in gold mining companies. He did not mention whether investing in the commodity itself might be profitable in the near future.
Just like the guy said before you need to find something that starts low and ends up high. For you to yield good returns you will either have to invest a billion dollars or the value of gold will have to double. What you need to do is research into lower valued companies right now that you think will grow. If you invest in something worth $3 a share the company doesn't need to grow as much for you to double you money. It is higher risk though because they aren't established but if you are smart about it and diversify you should end up gaining large returns.
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