Buy Gold in 2020? Yes
Gold prices have been on a tear going into 2020, rising from a lower range around US$1,200/ounce to now as much as $1,700/ounce at the beginning of March. In recent weeks it has dropped a bit, applying a retraction to remove some inflated speculation and adjusting to a true new floor of demand at approximately $1,550/ounce as of the ending of the month. So, the big question then is whether 2020 it or what is the real forecast for the gold year ahead?
Historically, gold has continued to deliver for investors, producing a 15 percent return annually per year when the overall returns over the last 10 years when averaged out (note some years individually fluctuated more than others). And with the current market situations affected by the COVID-19 pandemic, particularly how it is settling in long-term economic slowdowns globally, there’s a very good argument for gold to rise higher, maybe even breaking the $2,000/ounce value.
In terms of international trade and weaknesses of the market and why gold is such an important hedge now, the trade squabble between the U.S. and China provides a vivid display and example. China’s interconnectedness with the American market clearly illustrates how easily the Asian powerhouse can upend a major Western market today. That fact solidifies why gold is essential in any smart portfolio as a non-public market asset unaffected by modern governments. The China-U.S. conflict was avoided at the last second in December 2019, but the possibilities became very real.
To learn more about the future of gold in uncertain times, visit our MyGold website or see us in person at our store in the centre of Auckland’s business district. We’re easy to find, only 200 metres from the Sky Casino and the Auckland Sky Tower. Control your gold smart future instead being blown around by it.
Why a Crisis Makes for a Good Buy Time
One would think that gold is a great value hedge in a crisis. In fact, what usually happens is that there tends to be more supply as people suddenly sell to produce more cash in hand. That in turn lowers the price of gold versus increasing it. That can be a surprise to folks who buy at the beginning of the crisis hoping to make money and then losing their base value. It can drive some to sell right away, thinking they made a mistake. They didn’t but selling in a quick reaction is definitely a mistake.
What should happen for the forecast for the gold year ahead is that it will pull back in value and provide a very healthy opportunity to increase holdings. As the crisis stabilizes, gold prices will rise because its stable value becomes a go-to place for value protection when people want to put their cash somewhere again. As the value rises, that’s when the gold smart investment profit is realized.
Gold has never been a good asset for day traders and short window buyers. In fact, it’s often disappointed many looking for a quick dip into the precious metal and back out again. Gold instead has been a bastion for long-term wealth protection and steady growth. And that growth becomes aggressive when governments apply their crisis responses with market stimulation and subsidizing of industries to restart the economy again.
With the immediate 2020 slowdown due to global disruption from the COVID-19 virus, governments are very likely to fall in the same pattern and begin fast-charging their economies again. That makes right now a very opportune time for the future of gold in uncertain times. The next year or two will play out just like it has in the past, with a rising spot price value very likely. Find out more on our MyGold website or in person at our office. We are 200 metres from Sky Casino and the Auckland Sky Tower, in the centre of Auckland’s business district, being easy to find.
Gold is Back, Did you Notice?
Plenty of pundits for the last couple of years were making comments that gold prices had seen their last hurrah, and the global economy was too strong now to fall down again. Guess what? The American stock market lost a third of its value in the space of one week. And gold, in the meantime, rocketed back up to its pre-2013 levels, hovering now in the $1,500/ounce range for spot price. And a good number of experts are looking at the forecast for the gold year ahead, coming to a general agreement that there’s a high probability gold may very well break the historic ceiling of $2,000/ounce.
The folks making the prognostications are not far-edge voices from the unknown frontiers of the Internet. These are key economist experts from well-known and established personalities like Peter Schiff, Eric Sprott, Max Keiser, Jim Rickards, Doug Casey, John Paulson and similar. In fact, the big squabble among the experts is how fast each of them is updating their forecasts on the conservative end to get closer to what the rest are saying is a much higher target in 2020. Even Citigroup is expecting gold to get near or break $2,000 at the latest by 2021.
Considering the future of gold in uncertain times, the above estimates are from some of the most conservative perspectives in the gold smart market on pricing. The middle of the road and aggressive forecasters are well in the range of $2,500/ounce for gold by the end of 2020. And everyone agrees on one thing, regardless of where they are on the prognostication spectrum: gold is definitely going to rise higher than its value today at the end of March 2020.
To begin your position or add to it, read more at MyGold’s website or see us in person located in the centre of Auckland’s business district. We’re easy to find, just 200 metres from the Auckland Sky Tower and Auckland’s Central Business District. It’s time to catch your train. Get your ticket and let’s go!