Want to know why you should buy gold and silver right now? In this article, we aim to tell you just that. This industry is awash with predictions, and there is as much enthusiasm and excitement as there is doubt, but we’ll try to wade through that to tell you just why we think now is a good time to invest in gold and silver.
Gold and Silver Throughout 2015 and 2016
In 2015, we increased our stockpile of gold, because it felt like the perfect time to do so. In our opinion, the markets were all pointing one way and a rise looked like an inevitability. This was true for gold, but it was even more true for silver. That’s because silver is an essential part of many industries. It is used in the jewelry industry, it is used to make mirrors and electronics, and it is used to make practical objects like silverware. It is also popular with investors and is used to mint coins that sell tens of millions a year. But despite an increase in demand, supply is actually decreasing. The same applies to gold, because while most of the gold being mined is used to create bullion and ends up in the hands of investors, gold production is down. Not by a huge amount (just a few percent) but enough to cause concern. From a low of $1,050 in the final quarter of 2015, gold hit $1,285 in the middle of the year.
Silver, on the other hand, went from $14 to $17.5 in this period.
It’s not just about supply and demand either. Many experts believe that the next financial crises is just around the corner, and that the chaos in EU member countries like Greece, as well as the GDP decline in China, will cause a huge drop in the stock markets and the value of the dollar, two things that cause the price of gold and silver to climb. So, these precious metals are a great way of securing your fortune against potential economic decline, hyper-inflation and other woes that could be just around the corner. Which is why this is a very good time to invest.
The Future of Gold
There is no telling where gold and silver will go. We know that it will likely increase if the stock markets and the dollar continue to struggle, but we don’t know if they will continue to struggle. It’s all speculation, and nothing is guaranteed in this business.
In 2014, mining CEO Robert McEwen was quoted as saying that gold would climb to $5,000 an ounce, but he’s not exactly an unbiased expert. Bernard Dahdah, from bullion bank Natixis, had less positive predictions and estimated that during the first three months of 2016, gold would drop below $1,000 an ounce. Dahdah beat more than 2 dozen analysts to head the LBMA gold forecast in 2015 and pretty much nailed gold’s value throughout much of that year, but it’s fair to say that his predictions were a little off this year.
As we mentioned at the outset of this article, there is just as much positivity in this industry as there is negativity. There are just as many people predicting rises as there are people predicting falls.
Prediction website Longforecast have projected what feels like a more likely outcome, with gold experiencing steady growth throughout the next year or two, but this is something that you have to make your own mind up about. We have our opinions on the matter, just like every other gold and silver investor out there, but our opinions only affect us and our investments. When it comes to you and your investments, you’re the only one you should listen to.
By all means do your research and read-up on some predictions, but don’t buy or sell just because one person told you to. There is a wealth of experts out there ready to contradict each other, and none of them will ever get it right 100% of the time.
Now is a good time to buy gold for many reasons, some of which we have mentioned already, but no one can predict whether one of those reasons will cause a sudden hike in its value. And the same applies to silver, platinum and palladium. If you want to know where to buy gold bullion online, just go to our homepage.