Now, if you want to be a speculator that is a different story. A speculator thinks that the price will move in one direction. If he think that demand will remain strong and even get stronger he will buy gold at the current price or wait for it to drop a little. Then he will hold onto it until it rises and sell for a profit. If he thinks demand will drop or supply will increase than he will so to speak sell gold Los Angeles today and buy it back later. This is called going short and is beyond the scope of this article.
The speculator is always taking a risk in as much as the price can move against his position. Factors which he might not have even seen or been aware of might cause him great losses. Speculating is for those who know how to manage risk and don’t get emotionally involved or tied to their position. Everybody makes mistakes making money is managing those mistakes properly?
Stay smart. Don’t speculate. If you have old gold get it appraised and just sells it. Get some cash and use it for something useful.