Gold has always been the very cornerstone of the financial system and it doesn’t look like it’s changing anytime soon. If you are thinking about adding to your investment portfolio by purchasing gold this year, here is some essential information about expected gold prices in 2020.
No Record Highs
Most of the investment gurus are predicting that 2020 will be a good year for gold, although they doubt there will be any all-time highs this year. Gold had a great year in 2019 and is on a roll at the moment, thanks to the recent strengthening of the GBP, which is mainly due to the new British government. If the Brexit deal goes ahead as expected, we can expect to see a further rise in the pound, which should also be reflected in gold prices.
Global Economic Slowdown
The US and China are in a trade war and several first world countries are in a recession. Both of these factors are likely to result in a rise of inflation, which, in turn, would lead to many investors taking their wealth out of fiat currencies and buying gold instead. As the demand for gold increases, so does its value, so you can expect to see a tidy profit if you invest in Australian gold bullion at the present time.
Gold’s Stable History
One of the main reasons gold is such a popular investment is its long history of stability, and with experts predicting a slight global recession, this is even more of a reason to invest in gold, as investors look to move their wealth from the stock market into gold, which drives up the price.
The US – Iran Conflict
Due to the conflict between the US and Iran which began at the end of 2019, tensions in the Middle East have risen considerably, which has caused both oil and gold prices to rise. Some investors are predicting one ounce of gold could be as high as U$1,700, while many others think around U$1,600 is a more realistic forecast. Conflicts turning to war could cause a sharp rise in gold prices, as global investors would seek out the stability of gold, taking their wealth out of stocks, shares and bonds.
The Signs Are Good
While one can never be certain about the future, especially regarding global economics, all the signs point to the continued rise of gold prices in 2020, and if you would like to increase your investment portfolio with some gold bullion, an online search will take you to the website of a leading Australian gold bullion dealer and you can make your purchase at their offices.
The overall opinion regarding the performance of gold in the year 2020 is very positive, with many analysts predicting that this rise will continue into 2021, so the time is certainly right for making your investment now, before the prices rise. Sourcing a reputable gold bullion dealer couldn’t be easier if you search with Google, and no matter where you are located in Australia, there will be a registered gold bullion dealer not too far away.