Gold

Since the 1970s, the demand for gold has quadrupled every year – driving up the gold price. Gold is used all over the world for a variety of reasons, such as jewellery, technology and as a value store for central banks and investors. In fact, jewellery demand accounts for roughly 50% of the global demand, while 29% comes from exchange traded funds (ETFs).However, when any investment becomes too popular there’s the risk of a price bubble being created, which could send prices spiralling when it bursts. For this reason, many gold traders choose to diversify into other markets or manage their risk with stop-losses.