The gold is a tool against inflation and devaluation of currency when the central banks pumped stimulus money. Therefore, when the world faced the currency crisis in period 2007-2008 the central bank has injected a huge amount of
money to restore the economy. That action made the national currency was
devalued and eroded confidence makes people put their faith in gold as gold
prices rose sharply, becoming one of the most lucrative channels in the last
decade.
But now gold has not become more attractive. The risk of
gold price is huge in next time. Gold has fallen into bear market, when to lose more than
20% of its value from the record top of $ 1,900, and the funds themselves to
take advantage of opportunities when prices recover to sale their gold portfolio. I do not
believe the price of gold will rise beyond $ 2,000 as an expert has said because of the current gold bubble is too big.
Motivation of buying the gold is confidence prices will increase.
This belief proved to be true over last decade. When prices increase buyers forcing to buy and push up the price. Once a "chain
reaction" is pulling the same investors who buy more, to assert their own
beliefs to be true but it only takes place in a short time.
Gold Price Today
In addition to price of gold is in long-term decline channel, the trend of selling ETFs also cast a shadow over
prospects for the gold price. Funds like the SPDR Gold Trust has sold a huge
amount of gold up to a few dozen tons during the past time.
Currently, the gold price is supported by increasing of physical
gold demand, especially in Asian countries like India, China...
However, according to many experts demand on this gold market is not enough to help
the gold price rebound to previous highs.
On the futures gold market, traders held a net long positions
will likely shift to net short positions.
Although there is much concern about the devaluation of
paper money in many countries, but the investors poured money into stocks still be encouraged more .
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ReplyDeleteMr Pedro is a loan officer working with a group of investors who help us get funds to buy our new home, You can contact him if you want to get a loan at an affordable low rate of 2% RIO Email Him On . pedroloanss@gmail.com Or Whatsapp Chat: + 1-863-231-0632