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Gold Prices And Other Metals May Just Hit The Tubes

For years people have been buying gold as an investment for all kinds of reasons. You may have heard that gold is a solid investment, which is a hedge against inflation, because as the value of paper money declines the value of gold goes up. Those who can afford to buy gold may have been stocking up on some of it in recent years given the shaky ground of the US economy and other countries around the world. Some of that demand has created the ballooning prices of gold, as well as the increased use of it in electrical equipment in recent years. Meanwhile, the poor and downtrodden have been flocking to barber shops, and other unusual places to sell their gold for whatever they can get for it during desperate times.

Gold Prices And Other Metals May Just Hit The Tubes

Gold Prices May Be Hitting The Tubes

The high point for gold may have come and gone in recent years, making it a weaker choice for investment than it once was a few short years ago. (Image from Wikipedia)

There is some indication that the prices of commonly horded metals, such as Silver and Copper are set to sip in price, and gold has already backed off of its record highs. While the price of gold may not exactly plummet any time soon, it may just not be as solid of an investment as it once was 5 to 6 years ago. By all means, it is worth diversifying your assets, and it’s probably a good idea to keep some cash, coin, and alternate currency on hand in case of emergencies.

Gold sure hasn’t lost its place in the fashion industry, but the use of it in electronics may soon be on the decline. Many manufacturing plants in China are sitting stagnant with hardly any work to keep their employees occupied. These idle hands and powered-down machines are not producing as many consumer goods containing the gold that the once were in recent years. This will have some impact on gold prices, much like China’s drastic reduction in oil demand soured the world’s oil prices.

Pay attention to the signs ahead of time if you can, and be prepared to shift around your investments on the fly if need be. Gold may look pretty, and its always an instant classic, but don’t bank so hard on the soft metal in coming years.

NY Gold Prices JAN 13 2015

The price of gold is beginning to trade at lower prices. (Image from Kitco.com)

Gold Prices And Other Metals May Just Hit The Tubes.

About Steven Kenniff

Lives in Phoenix, AZ. Graduated from Arizona State University in 2005. Writes for American Live Wire, GM Roadster and Northstar Media