Is it just a coincidence that during the recession I started seeing tons of gold-buying commercials?
Jepedo47 asked:
Can someone explain to me the connection between the recession and all the gold being bought up. Unless there isn’t one
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Can someone explain to me the connection between the recession and all the gold being bought up. Unless there isn’t one
December 28th, 2009 at 1:19 pm
No, it’s no coincidence. As stocks and home values plummeted, people want to look for an alternative place to put their money to grow. Gold naturally goes up during these times, and that’s when all the gold sellers start advertising like crazy.
The problem is, by the time this has happened, it’s too late. Gold has already risen to new highs. The time to buy gold is when everyone is ignoring it and it’s at it’s lows. Uncle Pennybags
December 28th, 2009 at 6:23 pm
No, this is no coincidence. When an economy begins to slow (or weaken), there is always the fear of inflation. Whatever the cause, inflation is, at its core, a devaluation of currency. When a currency is devalued, like in Zimbabwe, some people decide they should buy gold which is seen as an inflation hedge. “Gold has never been worth zero” as I have heard.
Seeing more gold-buying commercials is a function of supply and demand. When the demand for dollars decreases, the demand for gold increases, therefore the demand for those who sell gold also increases. Mr. Product Sampler