As the precious metals market climbs to new heights and equities appear more volatile, many analysts, experts and investment firms remain bullish about the current uptrend and recommend that clients continue to buy precious metals. Both gold and silver futures are soaring this year and gold-backed exchange-traded products have reached their highest levels since 2009. These upward trends have many predicting a price of $1,400 per ounce for gold by the end of the year. Some believing it may happen as soon as the end of the third quarter.
The good news is—few expect the surge to end there.
Both gold and silver fluctuated slightly during 2016, but have remained in an upward trend overall. Their strength offers investors one of the safest plays possible in such a risky global market. With the long-term Brexit ramifications, weak economic growth across the globe, low to negative interest rates, volatile currency markets and lack of confidence in Central Banks. It makes perfect sense that these two commodities will only continue to go higher.
Low yield bonds are another factor contributing to the rising interest in gold. Once considered a haven for safe and steady returns, bonds are no longer the haven investors seek for wealth preservation. The looming 2016 United States presidential election, coupled with the potential for financial crisis, makes precious metals one of the most attractive investments right now.
While gold tends to take the spotlight when it comes to precious metals, silver provides an equally attractive opportunity for hedging portfolios in an uncertain climate. Like its gold sibling, silver is both a commodity and a currency with great demand for commercial and industrial use. In the immediate post-Brexit fallout, silver rose to more than $21 per ounce, its highest point in two years.
It looks like there is no better time to buy precious metals, whether you buy gold, silver or mix it up entirely.
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