The price of gold has been through a tumultuous year in 2014. Some market experts are claiming that gold is now experiencing a crash, but don’t be so sure that you should listen. In times of economic uncertainty, gold has traditionally been the safest place for storing value. The global economy is walking on eggshells as international sanctions and border disputes have sent some foreign stocks tumbling. Throughout 2014, the market has shown that some investors have moved into gold again, hoping to find a safe place for their money. But that time has passed, and though the price of gold is back down, it is far from a crash.
Price of Gold
At the beginning of 2014, the price of gold per ounce was just over $1,225. As the Crimea crisis unfolded, prices climbed about 12% to $1,375. By that summer, it was right back down below $1,250. A few months of climbing happened, but overall the prices were trending negative. As of September 2014, the value is right back where it started at the beginning of the year.
Buy or Dump?
If you’re holding onto gold, keep it. In fact, market predictions suggest that the next three months will see a further drop in gold’s value. Overall, demand for gold is decreasing but not drastically. The pendulum could be ready to swing the other way.
How to Profit
Prices for gold are still high, almost twice as much as they were before the financial crash in 2008. To play the long odds on gold, consider buying gold mining stock. As a roundabout investment in gold, gold mining stocks are a great way to profit from an increase in demand without selling off your gold. Buying now while demand is low is a good way to get in at a lower price. Major gold mining companies like Goldcorp (GG), Agnico-Eagle Mines (AEM), Kinross Gold (KGC), and Barrick Gold (ABX) all slashed their price evaluations by an average of $300, with Barrick shaving $500 off their prices. Consider all the angles before writing gold off as just for the conspiracy-believers and “gold-bugs.”