While the price of gold products fell slightly over the last week, savvy investors like Stanley Druckenmiller and David Einhorn remain bullish. Asset and wealth manager Incrementum AG recently predicted that bullion prices would reach an all-time high over the next two years. During the last quarter, the Liechtenstein-based company was the top forecaster for precious metals, according to Bloomberg.
Other experts believe prices will continue to surge as well. Some have gone on record stating that prices will top $2000 per ounce during 2018. The prospect of rising inflation is one major reason that pundits and billionaire investors continue to hedge their portfolios with gold products. Increasing inflation is an excellent reason to hold onto precious metals.
Another factor affecting the promise of gold products is the volatility caused by weakened confidence in Central Banks across the globe. Investors have lost belief that bankers will be able to stimulate the economy, even with negative interest rates. The upcoming United States presidential election is also causing some discomfort among investors, regardless of who is elected. When you examine how the Brexit referendum sent the markets into an uproar, it makes sense that the results of the U.S. election could seriously impact the global economy as well.
Demand for gold from Asia is increasing, especially in China. India is also approaching its famed festive and wedding season. During this time, the country is always one of the largest gold consumers across the globe. These two factors will most likely create a surge in demand that will significantly boost the price of both gold and silver products.
Year to date, the price of gold is still up 18 percent. With prices a bit lower this week, there is no better time to gain exposure to gold and other precious metals. Click through for more information on buying gold products and other precious metals online.