The total gold market cap is approximately $11.34 trillion.
Should the gold market capitalization be a crucial factor in your precious metal investment choices? Precious metals like gold and silver provide extensive benefits for commodities investors, but they are not attractive only as hedges against inflation. The market capitalization of your chosen commodity also brings certain risks and rewards with it as you survey the bigger picture.
The gold market cap dictates many external factors that can affect your investment, such as: It changes the sentiment of fellow investors.
It measures whether gold is still in demand or going through a dip.
It provides a mathematical framework for wise investment decisions to know whether another type of investment could serve better an investor’s portfolio. Most people are aware that gold is a popular investment for risk-averse investors, and it features in a wide range of settings. For example, millions of investors take out gold IRAs as a safe and attractive way to save for a comfortable retirement. Many financial advisors also tell their clients to apportion at least 10 percent of an investment portfolio to gold to counteract inflation and other market risks….