Will Gold Go Up In 2019?
From ancient times, gold has always seemed to be a fruitful investment. However, at some point last year, people began to steer towards precious metals such as palladium – causing the demand for gold to go down. Even in India, a country where gold held power, the demand seemed to be going down.
Still, things are starting to shift again. Currently priced at $1,304, gold is slightly less expensive than palladium – but at the same time, it is an attractive option for investors. If the price goes up once more, gold might turn out to be a good investment.
Below is a historical chart showcasing the current and past price points of gold.
Why Invest in Gold?
Gold is changing its prices almost by the second. Sometimes it’s more expensive, whereas other times it is more affordable – which makes investors see it as a certain risk. However, the benefits of this metal should not be overlooked if you plan on making your money grow.
Simply put, despite all the speculations, gold is still one of the most popular precious metals for investing. It’s a symbol of wealth and value, and it hedges against inflation as it diversifies your portfolio. Despite its fluctuations in every country, people still hold a special interest in this precious metal.
A 2019 Price Forecast for Gold
Those who have invested in gold are now hoping that the price will go up in 2019 – therefore bringing some profit from their purchase. However, do their hopes hold any foundation or should they go for other precious metal like silver or palladium instead?
To determine that, we might need to look at several other factors. For example, in the United States, the fiscal situation is dire enough to be bad on the U.S. dollar, causing it to drop with events such as Obama's record spending.
Read more: Is the U.S. Dollar in a Bubble?
America has now hit a public debt of $22 trillion (Source), causing the financial situation to be headed down a cliff. Plus, considering that around $1.5 trillion of this will require refinancing by the time 2022 turns a corner – at higher interest rates – it is quite possible that the bond yields will stay high.
The interest rates also seem to be growing as an attempt to repay debt. Still, this is good news for gold, as it will bring value to the investors. When there is a rising real rate, the chances are also high that gold will rise in the long term.
Plus, with the British political system facing economic uncertainty after Brexit and the past European financial crisis, gold is fairly much the safe haven for any investor. It is true that gold reached a low spot in August 2018. But starting with September 2018 and all the way into 2019, gold has seen continuous growth.
It is pretty difficult to see a clear price forecast for gold, as many other variables play a role. However, as the currency seems to be losing its value, and the countries are entering economic turmoil, there is a very high chance that gold prices will go up this year, making it a great investment.