Can Gold Lose Value? What Investors Should Know
Gold, as a precious metal, has a reputation that feels nearly unassailable. Most people often see it as a safe zone, more like something that cannot fail. However, is that always the case the answer is not always as simple as most investors will imagine. Gold does have the capacity to lose value, and sometimes does so. What is important is understanding why this happens and how often it does. But before that, we will take a closer look at what exactly this means and why investors need to understand this. What Is Gold and How Does it Work? Gold is not a company; it does not have any ‘growth’ and does not pay out any dividends. The value of gold is based on many different factors: Demand for it globally Fear and uncertainty Strength of currencies, particularly the US Dollar Supply of it globally Gold does not ‘grow’ like a company does, and is not an investment that is based on productivity in any form. This is important and helps to clarify several other points. Can Gold Act...