Everything that glitters may not be gold, but if the so-called “gold bugs” — investors who believe in the long-term value of buying gold — are correct, this could be an excellent time to add some gold to your investment portfolio. Here are 7 reasons why gold is a good investment in 2019.
Supply and Demand
Gold was in high demand for buyers across various sectors in 2018. Central banks added 651.1 tons of gold to their assets in 2018. Stock market volatility and international uncertainty throughout the second half of 2018 sent investors running toward gold. Gold bar and coin buying rose 4 percent in 2018. Gold mine production and supply were both up 1 percent in 2018. Gold jewelry sales have continued to increase in the United States and across the world. Gold jewelry is still a highly sought commodity by Atlanta gold buyers.
On March 22, 2019, the yield on the 10-year Treasury note dropped below the yield on the 3-month T-bill. Signs of economic slowdown or new trade disputes could cause uncertainty in the financial markets. When the economy sours, the value of paper-backed assets can plummet. However, gold can weather economic and financial changes and is the ultimate haven for savvy investors.
Global Debt Rises
Soaring public and private debt in the United States and around the world could undermine economies and, in turn, their currencies. Since 2012, the national debt of the United States has soared 44 percent — to more than $22 trillion. Government debt levels worldwide are high, leaving many countries poorly positioned to tighten their financial belts as global interest rates begin to rise.
Private debt in the United States is also on the rise. Consumer spending continues to shrink under the burden of student loans, auto loans, and credit card debt. Globally, private debt is also on the rise, bringing about the possibility of a global recession, currency devaluation, or even currency collapse in some nations. The best way to protect your wealth in such uncertain times is to invest in gold.
U.S. Dollar Weakens
Many of the trends supporting the dollar in 2018 have reversed in the first half of 2019. A weakening U.S. economy could reduce global investor confidence in the dollar. With news about the expanding trade war with China and continued stock market volatility, support for the dollar could be weakening. A dollar crash could send gold prices through the roof, making your gold worth even more!
Trade War with China
The uncertainty accompanying the current trade war with China has hurt the U.S. economy, which, in turn, weighs on the stability of the dollar. Gold remains a stable investment during uncertain times.
Global Currency Crisis Worsens
As of September 2018, more than 80 percent of 143 global currencies have decreased in value. These currency declines bring trouble to already struggling economies by increasing inflation, causing interest rates to rise, and delaying economic development. Savvy investors can prepare for these economic downturns by moving away from paper assets toward gold.
Mixing bonds with stocks is the foundation for many financial portfolios because when one goes down, the other tends to rise. Adding gold to your portfolio offers even more diversification to help ensure the ultimate safety of your entire investment package.
Are you looking for a place that will buy gold for cash? Call Elan Diamond Group at (404) 620-2066 to schedule an appraisal.