![]() Additionally, paper gold – aka ETFs carry counterparty risks. This is simply because paper gold companies often sell off their gold holdings when gold prices take a beating. Just as important to know is that physical gold beats paper gold for security hands down. Thinking of buying gold bullion? Download our FREE Insiders Guide to gold investing here Once again, it’s time to turn to gold bullion, in order to hedge against the risks of a possible downturn in the global capital markets, as well as forex markets. Well, in the present day, apart from global geo-political tensions, uncertainty continues to rear its ugly head in the form of Brexit, as well as the unfolding US foreign policy. Due to this, investors lost confidence in the US dollar and turned to gold. Bullion once again a safe haven assetĪpart from the global economic downturn, this earlier period of the 2008 economic crisis witnessed a tumultuous time in the US economy, as the debt ceiling crisis unfolded. If we look back in history, this is usually an indicator of investors pulling out of the global capital markets and parking their money in gold. Already, gold prices have shot up to $ 1600 per Troy ounce. Gold bullion bars are attractive to investors due to lower production costsĮlsewhere in the world, regional political instability and the US-China trade war has created a boiling pot of economic turmoil that could destabilise the global economy once again. Speculations are rife about how the new rules of engagement are likely to affect the already beleaguered European economy. Now that Brexit has actually happened, the uncertainty has not gone away. Europe has been neck-deep in economic crisis for a long time, driven by a number of factors, including fears of a hard Brexit. The predictions of gloom and doom have now been in the news for a while. If the pundits are to be believed, over 12 years of economic uncertainty has now culminated in what looks like yet another possible global economic crash. Right now, the news is probably getting worse. ![]() Infact, gold prices climbed to above $1900 for one troy ounce in August 2011. Well, if you look back at the gold price charts for 2011, you will see that at the peak of the crisis, everyone turned to gold. Well, the global markets have had an unprecedented run – probably the longest spell of economic uncertainty ever since 2008. Of course, it is common knowledge that savvy investors always turn to precious metals during times of economic uncertainty. You only have to open the papers to read that traditional investments are flagging, and alternative assets should now play a part in everyone’s portfolio. Everyone wants to own their own gold bars and coins. ![]()
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