As one of Canada’s leading online gold dealers, at Silver Gold Bull, we hear a lot about gold. One subject that’s always hot in gold trading circles is whether or not the price of gold is being manipulated. There are a lot of theories, but should you worry about them as an investor?
The main theory behind gold price manipulation is that central banks or big banks are systematically manipulating the gold market through gold leasing or paper gold, which they argue artificially inflates the amount of gold on the market. These practices would drive the price of gold down, so many investors believe that the value of gold should be much higher than it is today. There have been cases of prominent traders admitting to market manipulation, such as David Liew of Deutsche Bank, but the case that systematic manipulation is happening remains speculative.
If theories about gold price manipulation turn out to be true, and the end of manipulation is near, then the price of gold will rapidly escalate. If the skeptics prove right, the cyclical nature of gold as a commodity still opens up opportunities to enjoy sizeable returns if you invest in the gold while it’s on an upward trajectory. In the last decade, gold went through a major spike and decline, but it appears to have balanced out at a significantly higher price than before the boom. There are also signs that it’s on an upward trend again, spurred on by market uncertainty due to political events like Brexit and the Trump administration in the White House. Interest rates also remain low in Western economies, and because demand has been consistently high in China as the state attempts to diversify its reserves.
If you decide to buy gold bullion for sale from a gold dealer, don’t get caught up in theories or predictions, treat it like any other investment decision. Talk to your financial advisor, and if you’re a high networth investor, an account executive with Silver Gold Bull, and ask yourself a few key questions:
a) Does gold help diversify your portfolio and hedge against losses on the stock market?
b) Does gold give you the kind of liquidity you’re comfortable with in an asset?
c) Are you looking for a long-term investment for your RRSP that will improve its value and protect against inflation over the course of decades?
There are plenty of compelling reasons to buy gold bullion beyond the theories, you just need to know where to buy gold coins and bullion at reasonable price. At Silver Gold Bull, we sell gold in a wide range of forms, from 1 ounce gold coins to 1 kg pure gold bars. With one of the largest inventories in Canada, you don’t have to wait when you buy gold from us. Your order is shipped as soon as your payment clears, so you get your gold and silver sooner. There’s no reason to wait when you can buy gold and silver at an affordable price and get it right away.