Renee Dai
Gold prices are going up because there's too much money around and the dollar is getting weaker. Adding gold to your investments can help protect your money from losing value. Gold has been a good investment for a long time and might keep growing in value in the next five years. People are choosing gold to keep their money safe because they're worried about a possible recession.
Gold prices have been increasing due to the increase in the money supply and the loss of purchasing power in the U.S Dollar. For example, back in the 1920s, a $20 gold piece could buy you a fine-tailored suit. In today’s world, that same $20 gold piece can still buy that same suit. The money supply has grown exponentially recently, and the dollar’s purchasing power has decreased. Gold has historically been an excellent choice to preserve one’s purchasing power.
Anytime is a good time to buy gold. If your goal is to diversify your portfolio and add some insurance to your wealth, you need some gold in your portfolio. You can start this process at any time. We recommend being consistent with your buying schedule and aware of your dollar cost average.
Gold is an excellent long-term investment. Gold has survived the test of time. Wars have been fought over it, weddings are sanctified by it, and it is passed on from generation to generation. If you look at the gold price going back 50 years, you can see the longer you hold it, the more it tends to be worth.
We believe the value of gold will increase in the next five years. We base this on the fact that central banks are net buyers of gold and have been stockpiling gold at levels not seen in fifty years. This trend should continue as inflation cycles continue and central banks continue to use the same monetary policies.
We believe it's because investors realize we could see a global recession on the horizon. World economies have expanded in the last few years, and most economists say another recession is inevitable. It is quite possible that investors are taking profit in some areas of the market and then parking that capital in gold to protect it from a financial calamity.
