Do you invest in gold? Why have you invested in gold or chose not to invest in gold? Is now the best time to invest in the precious metal? Maybe, maybe not.
Financial markets have experienced high volatility since the start of the year. In January, US stocks dropped around 10%, while oil dropped approximately 35%, before both recovered in March.
This was as dovish tones from the Fed pushed markets up and oil-producing countries stated that they would restrict the supply of oil. Despite, markets recovering at the end of the first quarter, most analysts agree that 2016 be challenging year for the financial markets, nonetheless.
Gold Price Investing
In difficult markets, investors tend to look at so-called ‘safe haven’ assets as a store of value. Examples of safe haven assets would be German government bonds, US treasuries, and the Swiss franc. However, probably the most popular safe haven asset is gold. This explains why the price of gold has seen such a steep increase since the beginning of the year.
Year-to-date the price of gold has increased over 14% and gold has been one of the best performing asset classes so far this year. The price of gold is currently trading at around USD 1,224 per fine ounce, but many experts believe that there is still a lot of upside for the gold price in 2016.