In one sense, anyone who owns gold has a stake in its price. Certainly, we don’t want to see the price plunge, and we would like it to go up.
But for long-term gold owners, the concerns are not as acute as those of gold investors and traders.
This week sees two events which could impact the price of gold. The mid-term elections, and the release of the Federal Open Market Committee minutes on Wednesday.
Both events have the potential to make a difference to gold prices. The direct impact will be hard to measure, but the indirect impact – via the value of the US dollar – will be plain to see.
In other words, if the week’s events cause the dollar to fall in value, we will likely see a corresponding rise in the price of gold. And vice versa.
But as I said, when you own gold for the long term, as a hedge against uncertainty, you shouldn’t get too concerned about what does or doesn’t happen during the course of any particular week.
It’s not as if the week’s events will have a lasting effect on gold’s value. It will just push the price up or down…for a while. After that, all the other myriad influences that impact gold prices will come back into play.
One way or another, the gold you own now will still be yours, and will still represent a safe haven and safety net if the time comes when you really need to cash it in.
So enjoy the spectacle this week – but don’t stress about it.