The uncertainty among professional investors in the current climate is a sure indication the global economy is far from being on solid ground. Even still, gold bullion prices still look attractive and are likely to move closer to the $1200 mark if not below.
One thing confused traders are certain about is that sooner or later the world´s economy will be in tatters again and billions will be lost in equities. That´s why it is more advantageous to add gold bullion to your investment portfolio!
When the economy collapses gold protects you against certain loss in some investment and sluggish interest rates in bonds and ISA´s. Precious metals on the other hand love a financial crisis and perform strongly. If the next economic crash is when the debt ceiling collapses, the credit crash will be even more devastating than the 2008 crunch.
Buying gold bullion protects your savings against currency depreciation and your purchasing power against inflation. Investing in physical gold you can store in your own home also protects you against any potential banking collapse and there is no capital gains taxes payable when you come to sell.
Using Cyprus as a precedent, banks can legally take your savings as bailout money (if over €100,000.) Therefore it is probably more advantageous for you to take you cash out the bank and invest it in physical commodities you can sell later on – and nothing makes a profit like precious metals – especially in times of hardship.
Gold prices will rise
Gold prices always rise. The historical charts show that and the spikes are always in times of devastating financial crisis that ripples throughout the world. As noted above, an economic collapse is a sure-fire sign gold prices will rise, but given gold supplies are running dry, prices will rise as demand outweighs supply.
It is estimated that gold mining will have ceased by mid 2030 and will begin to slow down way before then. Gold production has already slowed in some regions as extracting the yellow metal and shipping it costs more than the current spot value. Many of the small mines have already closed down.
The larger mining companies of course are buying up all the smaller mines and have plans to expand gold production over the next five years. After 2020 we expect to see a slowdown in gold mining and prices will gradually improve.
Gold is easy to buy and sell which gives investors a distinct advantage to trade and make profits – providing you invest with long-term goals. There is little sense buying gold with the intention to sell in a year or two unless precious metals enter a bull market. Don´t forget to include costs of premiums and shipping when calculating the price you can sell with to make a profit.
To ensure your financial future is protected against the inevitable economic crash, buy gold bullion online today from reliable dealers like coininvestdirect.com.