Dateline May 23, 2015: Will gold keep rising? As we proceed through a few year now of low gold prices, we begin to notice some signs that gold is starting to move higher. An insightful article recently published by Ben Lockhart on the Seeking Alpha website outlines some observations he has made that suggests a price rise in gold in the cards.
Will Gold Keep Rising?: Key Observations
In summary, Mr. Lockhart makes three main points:
- He suggests that after a long period of depressed gold price, there are now some signs of life in gold. Indeed, a 2015 summer rally may have already begun.
- He observes that demand for physical gold has risen in the wealthiest of European countries. He suggests that this could be an indicator of things to come, especially if the global bond market starts to become bearish.
- He envisions higher gold prices in the near term.
All of these points are interesting and bear further comment. Indeed, over the last few months gold has risen somewhat over its bear market lows. Interest in gold from wealthy European counties is good for gold price, but look also at the increased buying from some other countries such as Russia, China and India, among others.
Global bond rates are at a long-term low point. Any sniff of inflation, or any economic chaos, could initiate a rise in bond rates and a flight to gold. Nothing is happening rate-wise yet but any catalyst could do the trick. Take a look at the Middle East for a tinder box waiting to flame.
What should the private investor do now?
Times like this, when gold price is low, beginning to rise, but not yet spiking higher, are the perfect times to add to your holdings. Right now, the price of gold is cheap. Do you think that the yellow metal will stay low forever? Not a chance. Will gold keep rising from here? No one knows. This time could be a head fake. But this time or one of the next times that gold is in this position of beginning to rise, it will be the beginning of a great rise higher.
Consider purchasing physical gold now. Our preferred broker, Golden Eagle Coins, has bullion coins, gold bars and other tangible gold products for you to invest in. One of our favorites, the American Gold Eagle Bullion coin, is a great investment, highly liquid, and a storehouse of gold value. Prices are low now…time to buy.
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