Gold’s value tends to increase when the US dollar is weak. Usually, nervous, conservative investors turn to the greenback and Treasuries as a safe haven. However, now that returns on currencies and bonds are insignificant, and worries about the weakening economy are rising, many have favored gold and silver.
Goldman Sachs is an American multinational investment banking company. It believes that the yellow metal will hit $2,300 in the next 12 months. Meanwhile, they think silver will surge to $30.
Other experts are also getting more bullish on gold. Deron McCoy is a chief investment officer with SEIA. He stated that, as long as the dollar continues weak, gold could continue to outperform. According to Ed Keon, a chief investment strategist and managing director of QMA, gold is better than having money in the bank.
The yellow metal prices hit $1,950 an ounce yesterday.
Where is all the stored gold going?
The New York Times, perhaps the world’s most prestigious newspaper, says that we are in the midst of a modern gold rush. The newspaper asserts that there is a multitude of options for storing the yellow metal, ranging from burying it in the backyard to storing it safely in elegant steel-lined vaults.
James Anderson, a research executive at SD Bullion, stated that gold and silver bullion storage options have simply grown more in location and price, and diversity.
According to Adrian Ash, a director of research for BullionVault, people tend to purchase gold when they fear a sustained loss of stocks.
Private vault operators have also increased their capacity, but specifically within so-called politically safe places like Switzerland and Singapore.
People have always considered Swiss banks as safe havens for precious metals and assets. However, in recent years, many people began to lose faith in them. As a result, there has been an increased demand for safes there that are not managed by banks.
Swiss vaults tend to be more expensive than those in Britain. However, a new space has opened in England that was designed for those accustomed to the luxurious lifestyle.
Unlike a bank, many gold owners believe the vaults are somewhat resistant to economic collapse. Gary Cubeta is a gold trader in Arizona. He claims that people are concerned that, if there was an economic collapse, the banks might close and their metals would be trapped inside that bank.
Even without an economic crisis, there is less faith in bank safes. This is because there are no federal laws governing these safes. So, if something is stolen or destroyed, the customer is generally out of luck.
That may be why some choose to go the old-fashioned route and store their gold at home. Numerous YouTube videos and bloggers explain how to bury gold bars in everything from minced meat to the backyard.
But it is wise to consider your options for home storage before simply tucking your gold under a tree.
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