Dateline Feb 9, 2016: Gold has been on an upward trajectory for three months, as investors and collectors add to their holdings. The main drivers appear to be political and economic uncertainty. These two factors do not appear to be going away soon, so the outlook for gold is higher prices ahead.
A View from USA Today
A recent USA Today article by Adam Shell discusses these factors in some detail:
- Economic policy uncertainty in the U.S. under President Trump: According to USA Today “some bad economic outcomes if Trump’s plans to slap tariffs on U.S. trading partners like China hurts U.S. consumers by resulting in higher prices of imported goods sold at U.S. stores”.
- Political anxiety regarding the populist movements in Europe and elsewhere: Also noted: “Populist movements in Europe could also spook markets if elections in countries such as France result in outsiders with nationalist streaks winning.” This would breed fresh angst over the European Union’s cohesion, especially in light of Britain’s vote to exit the EU last June.
- Ongoing stimulus from Central Banks: The USA Today piece cites Fawad Razaqzada, technical analyst at FOREX.com: “The loose central bank policy had until now little impact on gold prices because there was no inflation and speculators preferred to hold racier equities over safe-haven assets like gold amid a generally positive market environment.”
- Inflation on the rise: Razaqzada continues: “But now, we are heading into and inflationary period and this is why in my view gold is beginning to shine.”
Protect Yourself: Invest in Gold
Gold coins are can also be valuable additions to your investment portfolio. If your funds are limited, do not forget that there are plenty of low-priced gold coins available.
If your are a true coin collector, rare numismatic pieces can be a great investment. Gold coins such as the St Gaudens Double Eagle are always in high demand.
Where to Buy Coins
Gold bullion and gold coins can be purchased from online bullion dealers, coin shops, and at venues such as Amazon. Some or our preferred online gold dealers, who offer great value and secure discreet shipping, include Golden Eagle Coins, BGACS and Money Metals Exchange.
Given the current political and economic uncertainty, perhaps now is a good time to add gold to your portfolio.
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