If you are considering this sector and want to buy gold then there are many things that you will need to know if you want to get the best results and spend as little as possible. One of the critical areas of information that you should have and know is the current jobs and unemployment numbers. Many wonder why these statistics are important and what they have to do with this ore, but the truth is that they are very closely linked.
Is now the right time to invest? For many individuals the answer will depend on the economy, as well as other associated factors. The unemployment rate that is shown will help determine how much demand there is for a specific vehicle, and the supply and demand are both crucial components when it comes to the market value and spot price that are seen. If the total amount of new jobs created is low then this is an indication that the economy is still struggling.
Right now the jobless statistics are falling from previous highs, but chronic underemployment and consumers who drop out of the employment search because of frustration and a sense of futility are not reflected in the official statistics. The Labor Department only uses the individuals who are currently receiving unemployment benefits and this can skew the results and give a false sense of optimism if the true picture is not actually known.
Before you can determine the perfect time to put your capital in precious metals you need to know how the American and global economies are faring. If a recession is likely to hit then bullion can help you protect capital and get in before the spot price goes up substantially because of this decline. If the economy is growing and thriving then there may be other vehicles that offer more benefits and a better return in some cases.
As the market sees more risks the attractiveness of metals may increase. When many individuals can not find employment this affects consumer spending and investor confidence. Many decisions are based on emotion as much as factual data, and record numbers of unemployed and large amounts of home foreclosures do not breed confidence in the current situation. It can be the best time to choose gold or other types of bullion though, because of the protections that these can offer when the economy is sluggish or at a stand still.