Is Gold on the move once again?
Precious metals have always been considered as profitable and reliable areas of investment savings. Nevertheless, the prices of these assets are also subject to fluctuations influenced by market conditions, geopolitical situation in the world and the state of the currency market.
Many investors wonder: does it make sense to invest in gold, considering that since 2011 the price of this metal has a steady downward trend? It is advisable to further consider this issue being based on forecasts of authoritative sources.
How much will the gold cost in 2017?
In 2011 the cost of one Troy ounce of gold was averaging $1900. Shortly after the gradual and uniform decline in the price of the precious metal has began. In 2015 it has reached the level of $1 000-1 100.
Basically this situation arose as a result of the shift away from speculative, artificially inflated price of gold, which was far from a fair assessment. On this basis, many investors still believe that in 2016 the precious metal will continue to fall.
In general, experts suggest the following trends:
In the first quarter of next year the gold price will increase slightly and stay at around $1050-1100 per ounce;
In the second half of the year the value of precious metal will steadily decrease. It is predicted to reach $950-1000 per ounce in December.
At the same time, there are a number of factors that can lead to a gradual increase in the price of gold:
Firstly, the price can start to be artificially hold by the owners of gold mines, since its further reduction will result in a loss;
Secondly, the cost of precious metal may raise because of the decision of one or more countries to purchase gold in the national reserve;
Third, in 2014-2015, many gold mining companies have reduced production of gold, which could trigger the market deficit in 2016 and lead to higher prices.
At the same time, it should be remembered that the growth position of the Dollar in the foreign exchange market provokes an increase in the price of gold.
Investment in gold in 2017
Despite these conflicting predictions, the experts still consider investment in gold as one of the best investments in 2016. However, this kind of purchase will be capable to bring a weighty profit only in 2-3 years: the planet’s precious metal reserves are being reduced. This is the main point, which affects its price.
In addition, it is possible to focus not only on the purchase of bullion or gold jewelry, but also to invest in such areas as:
purchase and sale of futures contracts;
unallocated metal accounts;
investments in the shares of gold mining companies.
Thus, investing in gold in 2016, it is possible to form a long-term way of preserving the real value of savings and conservative profit. The short-time investments in this are not justified. Also the most liquid form of investments in precious metal is gold futures, which can be easily purchased and sold on the stock market.