Any smart investor knows that the secret to growing their wealth lies in investing in assets that will appreciate over time.
Precious metals, in particular, are always a good choice because they withstand fluctuations associated with stocks and other investment instruments. Gold has always been a stable investment because although it sometimes has some fluctuations, its value will always appreciate.
The value of gold can be attributed to the fact that it is a physical substance that has always been valuable since time immemorial. Before the availability of currency, gold was used as a medium of exchange. It thus means that people are more likely to have more trust in gold as opposed to other securities such as stocks. It is expected that gold prices could rise considerably in 2016, and there are good reasons for these expectations.
Why Gold Prices are Likely to Rise in 2016
Uncertainty in many parts of the world – One of the factors that are likely to push up the price of gold is the prevailing uncertainty and the talk of war in some of the world’s hot spots. The open hostilities between China and Japan are likely to have grave implications on the rest of the world if they were to lead to war. China stands accused of building on some disputed islands that Japan has been laying claim to. If the two countries choose to settle the matter through war, it can easily suck in their neighbors and lead to a much bigger conflict that can have huge ramifications across the world. A war would lead to crashing of markets and devaluation of currencies, and this would create a huge demand for gold leading to a rapid price appreciation. Global terrorism is now in people’s minds more than at any other time in history. The ability of the terrorists to strike in any part of the world has created a fear that affects investment decisions.
Loss of faith in the global financial system – The global financial system faces a test of faith due to the market crashes that keep happening. A case in point is the recent crash of the Chinese stock market that saw investors lose huge sums of money within a few hours. When such incidences occur, investors are likely to opt for solid assets such as precious metals. Gold happens to be the most sought after security because it remains fairly stable or appreciates in case of rough economic times.
The dollar loses value – The US dollar represents a currency that is acceptable in all parts of the world. Economic analysts predict that the value of the dollar may decline sharply in 2016 as a result of a slowdown in the US economy. If this happens, people will have less trust in currencies and will turn to gold for insurance. A good investor knows that in the worst case scenario where an unforeseen event occurs, people are likely to lose a lot of money held in stocks and currencies. The person with a portfolio that includes gold will not be hit as badly as the one without any precious metals.
If you want to grow your wealth, you need to be prepared for any eventuality. As it looks now, gold prices are likely to increase in 2016.
Capital Gold Group Call 1(800)510-9594, or visit us online at startwithgold.com.
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