Clif Droke | Jul 26, 2012 01:34PM ET
Gold’s historic run-up from $250 to nearly $2,000 an ounce in the last 10 years has underlined the long-term value and intrinsic worth of a key asset. It has also provided a fabulous, once-in-a-lifetime investment opportunity for many individuals, not to mention a long-term momentum trade for both retail and institutional investors.
Gold has also provided investors with an important lesson in the past year: despite its distinctive safe-haven value, the metal definitely has a speculative element that's critical to its price appreciation. In this regard, gold is no different than other assets. Gold’s speculative element was nowhere more evident than in the series of margin requirement hikes last summer, which saw gold fall from an all-time high of just under $2,000 an ounce to a low of around $1,550.
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Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
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