Gold Price Rally Continues Unchecked, XAU/USD Prints a Fresh 8-Year High. “Gold is becoming a better investment than the dotcom bubble. The price of gold has increased over the past two months and now it’s an excellent buy. The price of gold is not likely to reverse until the economic outlook picks up or political turmoil takes hold.
One reason for this is that the economic outlook has been relatively stable. The major causes of weakness in the economies have been removed and the global financial systems are largely stabilized. As a result, the main potential for economic weakness has been removed and the financial system is back on the right track.”
“One of the reasons for the surging value of gold is the fantastic return on investments. Investors are returning money to their safe haven for fear of a similar collapse and are finding a large profit. In addition, many people are investing because they want to do their part in taking control of the environmental crisis.
The price of gold is now under pressure because of the fact that the world faces a number of threats including the risk of currency devaluation due to the possibility of increasing inflation due to the influence of economic turmoil in developing countries and the risk of extreme weather events. However, as time passes, investors will find that the strength of the currency exchange rates will turn the tide on these fears.
Another important reason why gold is a good investment is that the industrial world is stabilizing and as the industrial world becomes stronger, many countries are considering the return of growth. In this situation, the demand for gold will remain high.
Therefore, it is worth noting that a lot of industrial nations, such as China, Russia and South Korea, are all facing trade wars with other nations. The most profitable sectors of the industrial world are those that are least affected by the trade wars and therefore the prices of gold will rise accordingly. In fact, it may be even more prudent to purchase gold when there is low demand for the metal as prices will be high when there is high demand.
“The threat of capital controls and increasing inflation are also causing fear in the financial markets, and thus a positive impact on the price of gold. Even though many countries are worried about currency devaluation and deflation, the price of gold is still high as a result of the risks that have been taken by industrial nations in recent times. Meanwhile, the price of gold is at a very low in relation to the risks.”
“As far as the risks that world leaders are concerned, there is no way to keep the economy together. Only the world’s governments can solve this problem. Countries like India, which continue to invest heavily in their stock markets, would not be affected by capital controls if these were ever to exist.
This is the reason why the prices of gold and other commodities are going up, although there is a high risk financial situation developing in many parts of the world. It is only a matter of time before capital controls are imposed on this great manufacturing world and the government will move quickly to secure its currency reserves.
The United States of America remains highly stable and this is what is causing the bulls to be aggressive. This is due to the fact that the world needs the US dollar and the US economy is not yet at risk from trade wars.
Moreover, the American central banks are standing tall and as long as the dollar holds this position, the price of gold will continue to rise. Meanwhile, the economic problems of the Asian economies are causing an uncertainty about the future supply of gold in the marketplace and this is causing the price of gold to go upas well.
If you think that I am trying to sell you on the fact that you should be buying gold, I would urge you to look at the facts and my history. I have long since sold my gold and are now sitting on a huge fortune. There is a lot of economic information available on the Internet and I encourage you to take advantage of it.