It appears as though the value of gold and other precious metals might be on the rise. Economic indicators point toward recession in the United States, China and other parts of the world. Global trade relations are at risk due to tariffs. The general public in New Zealand and the United States has little faith in government to solve pending economic woes. When this type of turmoil occurs, gold almost always increases in value. This just might be the best time in the past year or two to invest in gold.
Bad News for Equities is Good News for Gold Investors
Gold has shown a historically inverse relationship with equities prices. Veteran investors insist this is a good time to own gold as equities might be headed lower in the weeks and months to come. Economists far and wide believe stocks will face a bear market at some point in 2019. Though some investors will swoop in and buy on the dip, those dollars can only last for so long. At some point, selling will give way to even more selling. It is certainly possible the global economy will be in a bear market for a good portion of 2019 and possibly longer. If the market dips down, gold and other precious metals could increase in value surprisingly quickly. Investors tend to put their money in gold, silver and other precious metals as these investments are comparably stable when recessions strike.
A Looming Economic Recession is Great News for Gold Investors
Some macro models indicate the current economic expansion will become a recession in a couple quarters or even sooner. Some corporate insiders have initiated heavy selling in stock positions. Market watchers noticed this trend toward the start of the new year. If the United States stock market endures a sell-off and a corporate credit crisis develops, it just might be the perfect storm for a lengthy economic recession in the states, New Zealand and beyond. The fact that US GDP declined in the latest quarter is an ominous sign. Investors far and wide agree gold is one of the best places to protect money during a bear economy, regardless of how long the economic downturn lasts.
Time the business cycle trough right, put your money in gold and your prudent foresight could pay large dividends. Even if the stock market does not fall, you will have diversified your investment portfolio with a precious metal that has served as an incredibly reliable store of value for thousands of years. This is the type of investment you can make without feeling a hint of remorse. April 2019 just might be one of the best times in history to join the ranks of the world’s gold owners.
MyGold: The New Zealand Gold Sellers You Have Been Looking For
Are you thinking about investing in gold or silver in New Zealand? MyGold has everything you need. From the world’s top gold bars to the most coveted gold coins and more, we have it all. Give us a call at 0800 465 369 to learn more about our gold inventory and buying gold in New Zealand.