Well, I wish I could answer that in Yes or No. However, all the concerns mentioned in the questions are very valid, but are mutually exclusive events except stock market (which is impacted by everything). Let me take time and address them individually.
The most immediate reason for gold’s woes is the strong dollar. Gold is priced in dollars, so if the American currency goes up, investors mark down the yellow metal accordingly. An added factor is that the dollar is rising because of the revival of the American economy, which is bringing the prospect of higher interest rates. That is bad news for gold. Higher interest rates increase the opportunity cost of holding zero-yield assets: the money tied up uselessly in bullion could be earning a return if invested in treasury bills or other debt. Strong corporate earnings have a similar effect: when dividends are generous, it hurts more to miss out on them. Iron ore, Rubber and other material prices are down. Its not gold alone.
Greece has been in and out of trouble for long time. The country needs severe economic reforms. Its simple, they consume more than they produce as a country and cannot keep up with the credit payments like you and me can. (Btw, 25 States in U.S have more GDP than Greece. So, dont worry about it)
Oil prices have a thousands of argument but its simple the demand and supply logic. Top suppliers wont cut the oil production to hike the prices. They instead chose lower prices keeping the supply same. Also with the development in batteries, increase of solar energy and efficient engines (all kinds) the demand and prices will further go down.
The stock market rally was clearly sponsored by the Chinese government. It all started with the widely trumpeted announcement of the Shanghai – Hong Kong Stock Connect last year to help Chinese corporates raise equity beyond the Mainland, with the announcement of a huge number of IPOs following suite. The underlying reason for the Chinese to push the stock market at that time was that Chinese banks and corporations needed a venue to raise equity after an era of excessive leveraging. Yet neither the Shanghai nor the Hong Kong stock market was well placed after years in a bear market. The sudden collapse of the Chinese stock market had two triggers. First, the was a wave of profit taking after the Shanghai benchmark index broke through 5 000 in early June and doubts emerged about further easing from the PBoC. At that very same moment, China’s securities regulator announced measures to cool down the market, which amounted to banning brokerage firms from providing unregulated margin funding to investors. This was more of a shock to the system than one might imagine, as margin financing in China is much larger than in other stock markets.
Final Take: Market is unpredictable. But surely always favorable
Investing in gold for the future is a wise decision. Gold is a wise investment because many investors feel secure with it during bad economic times. Gold will also increase in value while stocks sometime decrease.
Smart investors know currency does not carry the same value it once did in previous years. Gold is becoming the wisest way for many people to have a more secure future.
Purchasing gold is a trend that should continue as the dollar slowly declines in value. The economy is uncertain with china and USA engaging in trade wars. However, more people are becoming interested in how to invest in gold.
Should You Buy Gold?
This a very important question you must carefully consider, before making a major risk taking decision. Why? because there is important information, you should be informed about before investing in stock.
Here are three steps that could possibly help guide you in making more informed decisions.
1. You should first contact experienced gold brokers about your desire to purchase gold bullion or gold certificates.
2. Research various companies online that buy and sell gold. They are sometime less expensive and easier to gain access, if you decide to sell your gold at a later time.
3. Search reviews about a company and gather as much information as possible before buying gold from them. Also, if possible seek customer reviews.
If you don’t feel comfortable with your decision, wait for the right time or seek more information about purchasing gold.
What Type of Gold Should You Invest In?
A very important question, because it is available in several types. Here are two choices listed that can help you get started.
- Gold Coins are a great investment to pass on to your children and grandchildren. It can also help with your pension during retirement years.
- Gold Bars are another way to wisely invest your money. In fact gold bars can be more efficient that gold coins. They are also more popular globally and available in a variety of weights.
Is the Time Right For Gold Investment?
Yes the time is right for some people, but NOT for everyone.
You should carefully consider your situation and not solely on what other people are doing for their lives. There are many factors to consider such as inflationand trends about gold prices.
Don’t make a hasty decision about gold investments, send a dm and know more on how your portfolio can be handled
Robert Darwin 