Have your friends and colleagues been talking about investing in gold as a way to protect their savings? Gold has been performing solidly ever since it emerged from a bear market in the 1990s, and that’s been attracting the interest of investors who are looking to offset the risks they take on the stock market. But as any investor knows, it’s not where an investment has been in the past, it’s where it’s headed in the future.
If you want to know why Canadians are investing in gold it helps to understand the factors pushing the price of gold up versus what’s keeping it down, and seeing where major players in the market expect it to go next year.
What’s Driving Gold Up?
Geopolitical events in 2017 and fears about their economic repercussions have meant that 2017 was a good year for gold, with the price consolidating around the $1,300 / oz. mark. As the world learns to cope with Brexit and the Trump presidency, gold remains a reliable investment. While the past year has been a tough time for the British Pound, the Catalonia secession crisis now means that there could be a crisis within the Eurozone and a collapse in the value of the value of the euro as well.
Experts have also been predicting interest rates hikes from central banks across the world; Canada in particular has been struggling with out-of-control real estate markets in several major cities, spurred on by a decade of low interest rates. Typically, when interest rates go up, Canadians invest in gold to preserve their money against inflation.
What’s Keeping Gold Down?
But there’s been downward pressure on the price of gold, too, especially from the stock market. The Dow and S&P excelled in the first half of 2017, with their best performance since 2013, and that environment is pushing investors to take more risks and put their money in stocks. When stocks are doing well, it’s an opportunity to put your money to work. But when the stock markets hit a decline, it’s already too late to switch to gold.
Where’s Gold Headed In 2018?
Major financial institutions like Credit Suisse, Citigroup, and RBC Capital are predicting gold to move up modestly in 2018, which is great news for conservative investors who want to see how markets play out in uncertain times. Gold could also see an explosion in value depending on the buying pattern of BRIC central banks, as governments like China and Russia have been bulking up their gold reserves.
If it’s time for you to add gold bullion to your investment portfolio, buy gold bullion online to save money and improve your return on investment. You can get cash discounts on gold bullion from dealers like Silver Gold Bull by paying with e-Transfers or Bitcoin. Keep an eye out on special offers to save money on premiums and shipping. You can also use Silver Gold Bull to set price alerts to receive instant notifications when gold or silver hit a certain price point, whether you’re buying or selling.
Gold is a safe haven in times of uncertainty, whether they’re economic or political. Take advantage of growth investments while you can, but always hedge your bets with gold investments.