Investing in gold could be a hit in 2019 – 2020 – Gold forecast 2019 2020
Do you remember couple of years ago how people where crazy about buying gold to invest money? People thought gold would continue to rise for a long time , it was a big gold hype in Sweden as I remember. Gold prices where all time high. I was a little skeptic when even the television commercials told us in Sweden to buy gold and invest for the future. The gold hystieria. People where buying gold to invest money, ordinary people who know nothing about politics or investing where buying gold bars to keep as saving for investments. But when everyone tells you buy and even the commercials in television do, you have to start questioning yourself.
We where at all time high gold prices and the year was 2011. Whenever there are bigger conflicts or geopolitical fear, gold prices tends to go.
So what about nowdays? After several years in a weak trend, the gold looks to be turning upwards again in the long term. It is the geopolitical fears that pushes up gold prices along with the volatility of the oil price and the stock market.
The uncertain situation seems to mean that the Fed will become less eager to raise the rates in 2019 than the market so far thought, he believes.
This uncertainess could get gold into a big upside. I think we could be in a bigger gold rally ahead if the stock markets will be in bear mode.
Right now, gold is at levels around $ 1,288 after climbing from $ 1,229 in the last month.
The volatility of cyclical assets such as stocks and oil has established a strong interest and demand for gold, also the geopolitical fears from Trump, and brexit in Europe could give gold more push towards a higher price.
The partial shutdown of the federal goverment does remind investors of the weaknesses of today’s USA, the country that had previously been the world’s global growth engine.
Some negative side about investing in gold bars.
They could get stolen, if you want to keep them safe in bank you will need to pay a deposit fee. The gold itself is just a metal, mostly not so useful like for example silver. Gold are sometimes taxed by goverment if you make profits. The only way to make profit is to hope the gold prices is going upwards. The historical return of gold are not as big as with common stock that are paying dividends. So you should be careful speculating. I am thinking the gold will make some up swing in the near future. But I am not in for gold.
What do you think about gold prices do we have a bigger upside in the near future?
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Historical returns are no guarantee of future returns.
An investment in securities / funds can both increase and decrease in value and
it is not certain that you will return the invested capital.
The return may also increase or decrease due to changes in the exchange rate.
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