Price of Gold is Rising
The seven-year bear market is ending, with the broad stock market crashing – the price of gold and the precious metals market will continue to soar. Investors have always seen gold as a safety net against economic and market risks. According to the International Monetary Fund (IMF) Global Financial Stability Report, investors should include gold in their portfolios for both short and long-term investment goals. The report has predicted that “Gold is one of the most liquid assets in the world and could be sourced should we enter crisis times.”
With the forecasting slowdown of U.S. economic growth in the past months as well as the escalating trade war with China, gold prices are being driven up. Gold is heading closer to the $1,250 mark says Naeem Aslam, Chief Market Analyst at Think Markets.
Stock Market Drops and Gold Rises
The gold market, long undervalued, is rising. In the 2008 crash, we saw precious metals value go down. Due to that event, it will not be so in the upcoming predicted stock market crash. The outlook for the U.S. dollar continues to be grim and experts warn to expand investment and retirement portfolios to more than paper money. China and Russia will continue building up significant gold reserves, which could be used to back their currencies and separate from the U.S. dollar. If we see China dump its U.S. treasury hoard—the U.S. economy would potentially collapse. Therefore, as we watch the stock market drop, the gold market is going to continue to build. However, when the U.S. dollar weakens, gold has always been seen as a safe bet.
The newest Bull Market starts with the most significant volume and gold price for over two years. Precious metals stocks are thriving, and the value of gold will continue to grow. Now is the time to buy. Massive gains in gold value will continue to rise. Gold is now at an all-time high, up 6.1% this year and 2.8% in October. The weakened U.S. dollar has caused highly volatile stocks and rising Treasury rates. Remember to always purchase gold through a reputable dealer like Bullion Exchanges. We are happy to help you through the safe and secure buying process.