Page 25 - Introduction to investing in Gold

The Beginner's Guide to Investing in Gold
Further on in this book, I’ll cover the B.R.I.D.G.E. system that I use for making this type of investment.
Anyway, that is a broad view of my thought process that got me to gold. But let’s dig a bit deeper.
Set out below are some of the other things I want you to think about when deciding where you want to invest.
Affordability
Again, let’s talk property.
A lot of people think the market is driven by supply and demand. To an extent, that’s true, but there are other pieces to the jigsaw.
There’s a lot of demand for Ferraris and Porsches and not much supply. Does everyone have them? No, of course not. Partly because they can’t afford them.
The same applies to property.
As interest rates went down, property became more affordable. A property that could previously attract £1m of debt could now cope with £1.2m. What happened? The price probably went up by £200,000.
The key being that affordability was driving the price.
The same can happen in reverse. If interest rates go up, you either have to increase the rent or the property is worth less – because it’s LESS affordable.
Here’s an example of how this may play out:
Imagine two couples, A and B. Couple A owns a property, and Couple B is looking to buy.
Couple A has lived in the property for two years. Although their cost of living
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