The Golden Future Of Gold
Guest Post By: BrisbaneGoldBuyers
Contrast to the usual analysts forecasting gold prices, the opposite is occurring as analysts scramble to match their previous forecast with actual gold prices with a myriad of reasons that start of with words such as because, but and if. The truth is – they were dead wrong and understated the price of gold and now have begun to increase their forecasts on gold price with the most obvious of reasons that even a greenhorn investor would be able to assess.
Gold prices breached the US$1,360/oz benchmark for the second time this year which indicates that there is a lot of pent up energy in the precious metal and the likely hood of all that pent up energy uncoiling all at once and unleashing its wrath on the market with vengeance is not fiction. The feeble Japanese bond auctions in the 3rd quarter of 2016 unnerved markets and sent gold prices surging by a good 29 % when reflected upon the dollar.
The truth is that most analysts are not realizing the plain and utter truth of people lack of confidence in the efficacy of recently installed monetary policies that were not only unconventional, but also bordering on desperate measures as central banks around the globe try in vain to stimulate the global economy. It is obvious that investors have started to move into risk management and are starting to use the precious metals to hedge portfolio risk while simultaneously adding more stocks and lesser quality bonds into their mix of assets.
It seems like a perfect storm has brewed and the tip of that storm has already begun to lift gold prices up making the 29 % leap gold’s biggest continuous gain since the debt crisis of 2011. The evidence is clear based on the fact that gold buyers are receiving, without a shred of doubt, the best performing returns of 2016, outranking all other primary benchmark indices. Let us not even go near crude oil as it suffers in the black pit that nobody wants to get into.
The BREXIT has evidently made matter worse causing the already uncertain financial markets to become even more uncertain driving even western investors eastwards where they believe markets are performing in a logical manner, the truth be told – they are absolutely right. The reason for this is the stability of most major markets in Asia that are growing making market manipulation exceeding difficult and costly.
The region does not have major political upheavals, such as it is in Europe and the Middle East. Although most investors were expecting to score higher after such a long hiatus, their wait were well rewarded as gold stabilised and allowed the market to recuperate.
It does seem that the next run is just around the corner and most investors are prepared for the dash, leaving the question – ARE YOU? If there is any direction that gold is planning to head towards – it is up regardless of where the dollar stands at that point in time.
To find out more about how to invest in gold, please visit the website of Brisbane Gold Buyers