Gold is a unique form of investment.It relies upon the buying and selling of a physical product, which exists in limited amounts all over the world. As these amounts are further reduced, gold prices soar, yielding more profit to those who bought gold at lower prices.
The value of gold is dependent on the amount of gold currently available, and the amount that can be possibly obtained in the future. Gold production today is experiencing a major surge as many of the vital deposits around the world are producing at an unprecedented rate. This may not last for too long. As these reserves are depleted and new ones peter out, the production of gold could lead to a relatively finite amount being partitioned among interested buyers. Countries like China are continually buying as much gold as they possibly can. As today’s current gold reserves are depleted and with a major player scrounging for every piece of gold, a future halt in gold production would mean a large upswing in the price of gold. A drop in production in the face of constant demand would make competition between buyers fiercer, and gold prices higher. Traders considering gold investment would do well to avail of the current prices, which can potentially increase as gold production wanes and demand waxes.