Is gold worth investing in?
The most important function of gold is to avoid risks. If you want to get high returns, its investment value-added is not large. In the long run, there will not be much room for appreciation. Compared with similar index funds and stock market investments, the return on investment of gold is much smaller.
Since the international gold price is priced in US dollars at this stage, the fluctuation of the US dollar will directly affect the gold price.
Generally, the interest rate cut by the Federal Reserve will stimulate the domestic economic development, and it will also lead to the depreciation of the US dollar, which will lead to a large number of US dollars being sold and turned to invest in another currency with value preservation-gold. As the number of people buying gold increases, the price of gold will also rise.
However, the inflation rate in the United States has been high in recent years. In order to cope with inflation, the Federal Reserve has continuously adopted the policy of raising interest rates. At this time, it is relatively easy for the price of gold to fluctuate and fall, and it is relatively difficult to rise. The dollar and gold hedge, the dollar index hits a new high, and gold will fall.
Secondly, gold is not as safe as expected, and its price fluctuates greatly. Generally, when the oil price rises, the gold price will also rise, and when the oil price falls, the gold price will also fall. However, there are many factors that affect oil and gold, so oil prices will rise and gold prices will fall, so the trend of gold prices is also difficult to predict, which is not a good thing for investment.
Is the risk of gold ETF linked fund high?
Gold ETF linked fund has high risk and is a high-risk product.
Gold ETF refers to an open-end fund that invests most of its fund assets in gold varieties listed on the Shanghai Gold Exchange, closely tracks the price of gold, and is listed and traded on the stock exchange. Linked funds refer to funds that invest most of their assets in ETFs. When ETF funds rise, linked funds can gain income. Therefore, the gold ETF connection fund is a fund that invests in the gold ETF fund.
Gold EFT fund tracks the price index of gold, which is risky, so the risk of investing in gold etf fund is also great.