Would Gold Really Be a Good Investment in the Years to Come

As the dollar moved higher, gold prices slid slightly lower as investors continued to mull the implications of China’s currency devaluation on the timing of an initial U.S. rate hike. And, in the face of this changing scenario research says that gold is going to become even less valuable and an unpredictable mode of investment for investors looking forward to reaping high rate of interest on the yellow metal.

Gold as a Commodity:

Different people have different way of interpreting the valuation of the yellow metal. Some consider it to be an evergreen commodity for investment and others take it as a strange commodity. For example you can’t eat gold, neither it’s a fuel to help you run your car, or keep you warm in the winter. However, whenever there is even a minor episode in any aspect of the global economy, demand for this precious metal increases.

Investor Psychology:

Due to the nature of gold and its ever fluctuating prices, it has generated a mixed feeling in the minds of the investors. Gold is a volatile commodity prices of which rises and falls in the short and intermediate term depending on the animal spirits of the economy. Over the time Investment companies in Delhi/NCR have witnessed a lack of interest among investors in gold and an increase in investing high ROI yielding less risky plans. One of the biggest reasons for gold for getting unpopular among investors is that it has not been able to give expected return to the investors in the last three years. And, with the present fluctuation in the prices, there will surely be less appetite for the metal in the coming years.

So, if you’re going to include gold, don’t take on very much of it. Earlier investors used to go by the saying “Gold is for rainy days”, but the face of the events have changed so drastically over the years that investing in gold for reaping good ROI may not be that profitable. Don’t be surprised though if prices continue to drop in the short term.