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This Yellow Metal will Double: How to Take Advantage

Yellow Metal
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EDITOR NOTE: Yahoo! Finance reports that the "yellow metal" known as gold is becoming a great investment vehicle in 2021. The outlet mentions that “one hedge fund manager, who predicted the metal’s rise to an all-time high of $2,000 per ounce last summer, is confident the price could climb to $3,000 to $5,000 an ounce in the next three to five years.” They also note that, with the current price of gold, buying now will make investors a lot of money if this forecast comes to fruition. Author Sigrid Forberg goes on to explain why gold is such a good investment in the current economic climate and writes that people can invest in gold through gold stocks, gold EFTs, and the most “straightforward” way, buying physical precious metals like non-Fungible gold and silver. 

For thousands of years, the most popular investment was gold: the prettiest metal you could bend, re-form, bury and reuse endlessly.

And even though investors have many more options nowadays, gold still has its champions.

One hedge fund manager, who predicted the metal’s rise to an all-time high of $2,000 per ounce last summer, is confident the price could climb to $3,000 to $5,000 an ounce in the next three to five years.

With the yellow metal sitting near $1,750 after a more than $40 drop on Thursday ⁠— its biggest fall in six weeks ⁠— now might be an opportune time to follow his lead.

Is buying gold a good investment?

Diego Parrilla, manager of the defensive and gold-heavy Quadriga Igneo fund, is undaunted by the metal's tumble and widespread expectations that the price will continue to slide.

“I think the drivers for gold strength not only remain but actually have been strengthened,” he told Bloomberg News last month.

Many people rush to gold in tough times. The shiny metal tends to hold up well during stock market crashes and periods of high inflation. .

Parrilla believes both could happen in the near future, as people are not appreciating the risks of the massive pandemic stimulus efforts underway, like today's incredibly low interest rates. He expects the next decade will see runaway inflation that central banks cannot control.

“Central bank money printing isn’t really solving problems, it’s delaying the problem,” Parrilla says. “Gold will benefit purely from being a physical asset that you cannot print.”

How to make money with gold

If Parrilla's argument is making sense, or you've got your own reasons for investing in gold, you have a few options available to you.

You can either buy physical gold like bars or gold coins, invest in gold mining company stocks or a gold exchange-traded fund (ETF).

Read more at Yahoo! Finance

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All articles are provided as a third party analysis and do not necessarily reflect the explicit views of GSI Exchange and should not be construed as financial advice.

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