You never quite know where your investments will lead you.
Black swan events can overturn a market at any time, and lead to major adjustments that can catapult your investment into unprecedented territory—both positively and negatively.
One of the biggest upsets that shook the market earlier this year was when the Robinhood stock trading app stopped clients from trading GameStop shares after they increased over 8,000%, causing hedge funds to lose billions of dollars.
Many factors can impact your investments. Although this is the reality of the market, it can be a less-than-comforting pill to swallow for many who are looking to solidify their savings and secure a stable financial future through their investments.
The truth is that the future is unpredictable.
The GameStop shares event is one example of a group of people being right but not being able to act on it.
When it comes to making smart investments, however, you don’t need a crystal ball to make the best call: 19% of Rush Gold users are called “The Explorers”, who can’t predict the future but are pretty good at reading market trends and choosing an investment that is likely to pay off.
Like The Explorers, we’ve identified nine different types of gold buyers who are using the Rush Gold platform to buy gold and you can learn more about them from our post: What type of gold buyer are you?
These users don’t have a definitive long-term financial plan when they put their money in gold, but they have a feeling it will pay off, and we’re right there with them.
Is it wise to apply the ‘speculate to accumulate’ principle when it comes to gold?
Well, 19% of our users think so and have a speculative approach to gold.
A large percentage of our gold investors put their money in gold with a plan in mind—protecting retirement or other savings for example—but another large chunk of our users is simply exploring investment options in gold.
The principle of speculating has gained an understandably bad rap over the years and is largely used to describe risky financial gambles that aren’t research-based and might not pay off the way speculators anticipate.
Which of course brings to mind cryptocurrencies, which have been growing dramatically over the last few years.
Consumer demand is escalating for alternative investment options to diversify assets and operate outside the fiat system, hoping to manage the risk of economic instability.
That said, we’ve seen immense volatility in crypto prices and with the correlation of performance between crypto and stocks, the diversification argument is falling away.
Gold is the world’s oldest asset, helping protect wealth from inflation and systemic risk, and historically has performed countercyclically to the stock market.
That means that when our gold explorers opt to join the new gold rush, they are actually making a financial decision supported by the overwhelming resilience gold has shown over many years.
How they choose to grow their investment over time is up to them. All gold does is provide them with a stable foundation for their investment.
Where does that leave you?
Staying on top of market trends is a great way to make an informed decision about how to safeguard your finances. It’s impossible, however, to anticipate every market change.
Whatever you want to do or however you want to invest, Rush Gold is here to support you and give you a secure, user-friendly platform you need to invest in gold bullion.
If you relate to these gold explorers, now may be the time to follow their lead.