can gold actually reach atleast $1500 by the start of 2017? exploring the possibility.
My analysis indicates that gold will be implemented in order to protect global purchasing power and to minimize losses during our upcoming periods of ‘market shock’. It serves as a high-quality liquid asset to be used, whereas selling other assets would cause losses. In this manner Central Banks with the world’s largest long-term investment portfolios use gold to mitigate portfolio risk. Consequently, they have been net buyers of gold since 2010. Investors should make use of gold’s lack of correlation with other assets, which makes it the best hedge against currency risk. In May of this year, there was a huge trend change in US gold investment as the Swiss exported a record amount of gold to the United States. There has been a huge increase in gold flows into the Global Gold ETFs and Funds. Something seriously changed last May as the Swiss exported more gold to the US within one month than they have done over the entire previous year.
Despite the fact that we are in for a period of great financial turmoil, investors can safeguard themselves by investing wisely in gold. Do not be left behind and witness your dollar assets losing their value. It is under these very conditions that gold is the only investment which will remain in its original value at the minimum but appreciate in value over time. Gold will continue to perform its role as a safe haven during these times of crisis…which currently appear to be never ending. The metal surged as much as 8.1% on the day of the Brexit vote. This is unquestionably an indicator that gold’s luster of safety is undimmed under current market conditions. Governments around the globe have moved to a new stage of desperation by toying with the idea of "helicopter money”. It is my belief that since Brexit occurred, it could unleash a general exodus from the EU. Consequently, the disintegration of the European Union (EU) is now almost unavoidable. The list of prominent Hedge Fund Managers who are investing in gold is growing. Paul Singer, of Elliott Management Corporation, is the latest name to lend his support. It is likely that more investment institutions will turn to gold as the logical solution to countervail the effects of many years of ‘Quantitative Easing’. Gold has been “traded” for over 5,000 years. And for the first time, it has a positive carry in many parts of the globe as bankers are now experimenting with the absurd idea of negative interest rates. Some regard gold as a precious metal…while I regard it as a currency operational since 5,000 years!
The Fed is doing everything in power to prevent a rise in the value of US dollar. The Fed is getting everything it wants in this regard. Consequently, it will continue to do so as the Fed’s number one priority is debasing the US Dollar. As the US Dollar falls and the world grips under mounting pressure of negative interest rates it will lift up gold prices to unprecedented highs.
Investors of all levels and experience are attracted to gold as a solid, tangible and long-term store of value that historically has moved independently of other asset classes. Under current conditions gold’s importance is clearly visible during the massive rally at the start of the year, when all other asset classes were tanking. Investors piled into gold on the scare of an imminent global financial reset.
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