What You Should Know Before Investing in Gold In South Africa
 

What You Should Know Before Investing in Gold In South Africa

Have you decided to start investing in gold in South Africa? If so, this can mean big things for your portfolio as gold is a stable and reliable commodity which can diversify your portfolio. However, before you take the plunge, there are a few things you should know.

Investing In Gold In South Africa

Gold can give you the upper hand over a weak currency:

As a South African, you definitely know all about the weak currency and inflation. If you invest in gold, you can rest assured knowing that it is recognised all over the world as a store value, meaning that it will retain its value and buying power as the price doesn’t necessarily move the same way as one country’s currency.

Things that can push gold prices up:

Gold prices can go up due to the following factors:

  • Crashing markets: crashing stock prices cause investors to become cautious, which pushes gold prices up.
  • A country’s falling currency value: If people expect the value of their currency relative to commodities or other currencies to fall, they’ll tend to buy gold.
  • If high inflation is expected: When investors expect high inflation, they tend to take action.
  • Political crisis: A crisis in a country regarding politics or war can cause the people of that country to hoard gold.

Things that can push gold prices down:

On the other side of the coin (excuse the pun), there are also a few factors to look out for when investing in gold that can push prices down:

  • Low inflation: The demand for gold usually dies down when people are expecting low inflation. This is because they aren’t as worried about the value of their money being impacted.
  • When securities markets are doing well: This can cause investors to ell their gold reserves.

Invest In Gold

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What You Should Know Before Investing in Gold In South Africa
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What You Should Know Before Investing in Gold In South Africa
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Have you decided to start investing in gold in South Africa? If so, this can mean big things for your portfolio as gold is a stable and reliable commodity which can diversify your portfolio. However, before you take the plunge, there are a few things you should know
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Likemoney.co.za


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