Why Investors Are Investing in Gold Now More than EverBrenda Whitman
Financial experts keep changing their outlook on gold. In the middle of last year, they predicted that it was about to take off in a big way. Then in the fall and winter, prices began to decline again, and experts warned that it was going to continue on this downward path. Now in 2017, gold is on the rise again, and investors are enthusiastic about it again. Of course, if you’re really a smart investor, you’ll keep your gold investments through thick and thin, regardless of these shifting forecasts. Here’s a look at why, along with what’s going on with gold at the moment.
Gold’s Rally Amid Uncertain Economic Times
As previously mentioned, although gold saw a decline at the end of last year, it’s been on its way up since January. In fact, it stands poised to continue its rise for the foreseeable future. There are a number of possible reasons for this. First and foremost is the current air of uncertainty in our economy. Stocks are currently on the rise, but the higher they go, the more likely they are to fall drastically in the near future.
Meanwhile, interest rates are going up, with the promise of up to three more rate hikes over the course of this year. This is a precursor to inflation, and can ultimately be the harbinger of a recession down the line.
That inflation could be compounded if the government imposes new tariffs, as they’ve expressed a desire to do. By making it more expensive to do business overseas, prices will rise and stocks will fall, causing further economic turmoil. Amid these conditions, gold remains a safe, secure investment. Therefore, the same financial experts who were declaring the metal’s demise just a few short months ago, are now flocking back to it.
Gold as a Long Term Investment
Of course, the smart investors never left. That’s because gold isn’t like stocks and other investments, wherein you buy when it’s low, then sell as soon as it goes up. If you’re looking to make a quick buck, gold is not what you’re looking for. It’s most profitable in the long term.
The reason people rally around gold when the markets fail is because it’s a safe haven. As a physical commodity, it’s not subject to inflation, but retains its value over time. Its price may rise or fall over the course of a few months, but over a few years, it goes steadily up.
This makes it ideal for protecting your nest egg against the volatility of other investments. When your stocks go down, you still have your gold—which tends to go up during periods of market volatility. This will prevent you from losing your savings and ensure the safety of your retirement fund.
Many experts are predicting that gold’s current upward trend will continue for the coming months. This makes now the ideal time for you to invest in it. Its price is still relatively low, but it won’t be for long. The longer you wait, the more expensive it will get. Put your money into it now, and watch it continue to rise. You’ll be glad you did.