This is why many investors will buy gold this year

This is why many investors will buy gold this year

20.09.2016

Every market is looking now at U.S. data, reluctant to establish new positions until the Fed meeting is celebrated this week. And last week's earlier 1.5% investing losses of gold in Dollar terms kept investors cautious for a while.

Some details are beyond our scope. But gold has, though, another plan up its sleeve. Keep on reading to know why investors plan to buy gold during the remaining months of this year.

This week started negatively in terms of gold selling. On Tuesday, gold prices touched $1,315.27, the lowest in more than a week. However, this figure has two sides.

A two-sided coin

The expectations on the U.S. Federal Reserve rising the interest rates have receded, putting pressure on the dollar, which, when it falls, makes gold cheaper for holders. This reduction in gold prices supposes a risk for sellers and, on the other hand, an unquestionable advantage for buyers at the same time. Gold is like a two-sided coin offering advantages whatever its economical situation is: an asset deserving its safe-haven status.

Selling this precious metal might be more problematic during what is left of the year, whereas the lowering of gold prices makes 2016 the most suitable time for its purchase.

Forecasts for 2016

  • Average gold price for September: $1,296

  • Average gold price for October: $1,288

  • Average gold price for November: $1,254

  • Average gold price for December: $1,263

These figures are average, though. Gold prices can reach a maximum of $1,426 during these months, but the range of variability will remain more or less stable. If we have a look at what is expected during the course of the first half of 2017, gold prices are predicted to reach a new maximum of $1,527, which makes 2016 the apt period of time for the purchase of gold.

In the words of experts

The experts' opinion about buying gold is firm. We disclose the reasons behind this year's avid purchase of gold:

 

"If we have both gold and stocks in a portfolio, you will get better risk rewards than a portfolio with just stocks...Given this strong negative correlation between the two assets, there is a good reason to hold gold in a portfolio”

Yuichi Ikemizu, branch manager for ICBC Standard Bank's Tokyo office

 

Gold is underrepresented in many portfolios as the only money and store of value that has stood the test of time. That is why many investors are buying gold this year."

Paul Singer, Elliot Management founder at CNBC’s Delivering Alpha Conference

 

"Gold is approaching the important $1,300-$1,310 supportzone, which has held incredibly well since the Brexit rally, and will be a key focus for traders in the short term."

AlexThorndike, senior precious metals dealer at MKS PAMP Group

 

Now it is the moment to buy gold, and Global InterGold makes it accessible for everyone. With Global InterGold, the sale and purchase of gold is within the reach of all, and the company's business model makes clients seize the benefits of doing business with gold.