By Steve Hunt
Gold is undoubtedly on the rise. It has risen hundreds of dollars in value since the beginning of the year and currently stands at just over $1,300 per ounce. As gold continues its steady climb, investors and experts alike are asking themselves just how high this precious metal will go. Following is a close look at the reasons for gold’s current rise and why it has the potential to climb much higher than some would expect.
Gold May Soon Hit $1,900
Some analysts have made the astounding prediction that gold could easily rise up to $1,900 per ounce soon. There are a number of reasons to back up this prediction but they boil down to the fact that economic problems, political turmoil, and fiscal mismanagement in various countries are working together to create an uncertain atmosphere that is leading investors to want to invest their money in a solid commodity that has stood the test of time.
It is no secret that paper currencies and international monetary systems are letting the common people down. Many are worried about further FOMC hikes, paper currencies continuing to lose value all over the world, and central bank actions having wiped out trillions of dollars of worth from national sovereign bonds and instruments. Furthermore, gold has seen substantial price rises even when rates were raised during economically turbulent periods.
Additionally, many nations are politically unstable at the present time. Britain has recently voted for Brexit but no one really knows how it will play out in the long term as no other nation has ever left the European Union before. Turkey is recovering from a coup but is far from stable as a crackdown on government opponents is in full swing. The U.S. presidential elections are causing concern, as are terrorist attacks in the U.S. and the EU.
Free Reports:
What Does This Prediction Mean?
Given the fact that gold is expected to rise in value, it is not surprising that many investors feel that the time to buy this precious metal is now. Purchasing gold now is certainly a wise move; even small quantities of this metal can turn a tidy profit if gold jumps from its current position up to $1,900. While a weaker dollar and a gradual decrease in demand after the Brexit vote has caused the price of gold to fall somewhat over the three weeks afterwards, gold prices suddenly jumped up again this week after the Bank of England cut UK interest rates to a new all-time low of .25% and announced up to $220 billion-worth of new quantitative easing.
While gold could hit the $1,900 mark soon, it’s important to note that gold is a long-term investment and those who purchase it need to be willing to hold out while its value rises and falls a bit before peaking in value. In fact, some market experts expect the price of the yellow metal to double from its current levels. Christopher Wood of CSLA maintains that gold bullion could hit $4,200 an ounce in the long term. Gold has been the second-best performing asset class for the year, and the above-mentioned economic and political factors are colluding to support long-term increases in value.
Gold is a rare resource that cannot be printed and manipulated in the same way that paper currency is. As political and fiscal turmoil continues in various parts of the world, investors will naturally look for investment opportunities that are proven to be both safe and profitable during difficult times. Gold is a rock-solid commodity investment that has always been considered valuable and the fact that it is relatively affordable yet steadily rising in value means that the time to buy it is right now. Consider your options to determine which gold investment option or options are best for you, decide how much you are willing to invest and make a move before gold takes off.
Author Bio:
Steve Hunt is a Sr. Advisor at Scottsdale Bullion & Coin and has over 14 years of experience in the physical gold & silver markets. Read more articles from Steve on sbcgold.com & Google+.