New Zealand investors are on edge following the dollar’s significant decline. The New Zealand dollar recently dropped to a two-year low against the greenback. This is terrible news for those holding significant amounts of cash yet it is a fantastic development for those who own gold or looking to buy gold. If the dollar continues to slide, investors far and wide will pour even more money into gold and other precious metals.
Details About the Dollar’s Tumble
New Zealand’s dollar decreased 1.2% against trading partners. Interest rate swaps also decreased following the Kiwi central bank’s statement that rates would remain at record lows upwards of a full year beyond initially indicated. The dollar’s decline represents its lowest point since the spring of 2016. However, the dollar’s fall is not all bad news; those holding or looking to buy gold will benefit as confidence in currencies continues to decline.
Seize the Opportunity to Buy Gold
It is time to start thinking of gold as a form of protection or insurance against the seemingly inevitable devaluation of New Zealand’s currency as well as other currencies. There is no sense owning currencies en masse when a trade war looms and geopolitical tensions rise. Investors dump their money in gold and other precious metals during such periods of economic chaos. Though gold spiked following the New Zealand dollar’s slide, there is still plenty of time to ride this train. Donald Trump and other “strong men” around the world seem hell-bent on engaging in a nasty trade war that will ultimately send investors scurrying to safe havens such as gold.
Buy Gold as an Insurance Policy Against the Seemingly Inevitable Devaluation of Currency
The days of investing in gold strictly for its utilitarian value are gradually fading away. Nowadays, investors across the globe favour gold and other precious metals for purposes beyond sheer utility and eye-catching aesthetics. Gold certainly serves a number of important roles yet it is also an ever-important investing tool. The price of gold will likely continue to climb as more investors begin to view it as a form of protection against the devaluation of the New Zealand dollar as well as other currencies. If you are invested in the New Zealand dollar or another currency, this is the ideal time to hedge your bet. Scoop up some gold and other precious metals and the decline of the New Zealand dollar will not sting so badly.
Even if you do not have a large position in currencies, buying gold now or in the near future will likely prove to be a prudent investment. It appears as though the geopolitical drama will be in full swing in the months to come thanks to Brexit and trade conflicts brewing between the United States and other nations. Gold will undoubtedly rise in value as seems to always occur during times of political, social and economic unrest. Time the market right and you will enjoy quite the valuable insurance policy for your currency position.
World Class Gold is Available at MyGold
We have the best gold in New Zealand and beyond. Kiwis far and wide rave about our precious metals offerings, prices and customer service. Whether you are looking for a means of hedging against declining currency values or if you are simply looking to expand your portfolio, buying gold is the answer. Contact us today to find out more about our gold offerings and learn about the nuances of buying gold. You can reach MyGold by phone at 0800 465 369. You can also contact us through our Contact Form. If you prefer email, send a message to email@example.com and we will contact you at our earliest convenience.