People buy gold in times of economic uncertainty. It is a tangible asset that functions as a store of wealth. It has a tangible value, as opposed to paper dollars. And some argue it protects against inflation. The plummeting stock market has scared many investors into buying gold… making it one of the most popular investments of the past year.
But now stocks are rebounding, the MSCI World Index has climbed 23% in the past month, and gold is has dropped 6.5%. People's risk appetites are increasing, and they're jumping back into the market.
The precious metal has fallen 5.2% in the past three trading days, wiping out any gains for the year. If you always buy gold as a form as savings, and never worry about selling (as we do), it might be time to buy a few more ounces.
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