The price of gold recently rose by 3% fueled by the strained relation between the US and North Korea. Its price is at its highest in over 5 months. Typically, gold prices are influenced by several factors such as nervous markets, weak dollar, interest rates and political events. When gold prices climbed on Easter Monday, analysts predicted that the trend will continue because of the tense markets and the upcoming elections in France. German voters are also headed to the polls later this year which could affect the metal markets. Is this a good time then to gift yourself, family or a special someone with gold? The answer is yes.
Gold Has a Bullish Outlook
Historically, gold prices are affected by uncertainty in markets making the metal a safe-haven asset. With changing political scenes occurring across the globe, there is a lot of nervousness about how markets will perform. The demand for gold flourishes when yields and losses to investments are unclear and doubtful.
Gold vs. Paper Money
Moreover, faith in the paper currency is declining in the last years. There is a lot of cash/money in circulation. The upside for gold investors who are utilizing the services of market leaders such as Lear Capital, is that the value of the precious metal has been appreciating against currencies.
Across the world, major events have created further uncertainty. These include the bombing of a Syrian airbase and dropping of a bomb in Afghanistan by the US. The tense relations between Russia and the US as well as the hostile association with North Korea continue to affect markets. Moreover, the war in Syria and constant terrorism threats contribute to global instability.
Low Interest Rates
Interest rates around the world continue to be subdued and are at historical low levels. Analysts predict that global and political events continue to pull mortgage rates lower.
Demand for Gold Continues
China is the number one consumer of gold with India a close second. Gold is viewed as a tangible asset and the Chinese are shoring up their own reserves which in turn spikes demand and prices.
There is reason to believe that gold will continue to hold its position as a secure asset. It has proven itself to be a prudent investment that will stand the test of time. Hence, a few gold coins, bullion, jewelry or even investments in a gold mining company are opportunities that must be snatched to take advantage of the recovery.