Precious metal market experts are confident that high volatility* on the stock market in 2019 will facilitate a noticeable increase in gold demand.
Metal Bulletin analyst Boris Mikanikrezai:
“Due to the instability of the world economy people turn to gold, as the most promising and stable asset.”
Expert opinion: what to expect from the price of gold?
Kitco News found out the opinion of investors regarding the prospects of gold. The vast majority of respondents are optimistic and expect a rise in the price of gold during the first half of 2019.
George Milling-Stanley, head of investment division of the US asset management company State Street Global Advisors:
“Global currencies are weakening and thus can no longer ensure the safety of personal savings, so people opt for gold. The government and the central banks of various countries are currently striving to support the country's economy by all means, building up gold reserves. This process must stimulate the price of gold. A steady growth is only a matter of time.”
Head of commodities of the investment company Finance S.A. Alain Corbani:
“The current monetary policy* in the world makes the noble metal an increasingly lucrative option for capital investment. A rising inflation and a decline in the exchange rate of the American currency are expected soon. These factors will have a positive effect on the price of gold.”
The best time to buy gold
Bloomberg Intelligence experts believe that the current price of gold is ideal for the purchase of investment gold.
In an unstable economy, global market risks continue to increase, Dow Jones* and DAX* stock market indices are dropping, simultaneously serving as price drivers of gold.
Financial experts are certain that gold will survive all the crises and won’t depreciate.
Michael Sinden from Wood Mackenzie noted that the gold mining industry has entered a “heyday” phase. The growing demand for gold leads to a significant increase in its global production, and the gradual depletion of precious resources on the planet remains a stimulating factor for its price.
Michael Sinden, research director of the British consulting company Wood Mackenzie:
“The shortage of gold is beneficial for its price. Based on our forecasts, the price of gold will demonstrate a steady growth.”
Within the week, the price of gold increased from $1,293 to $1,303 per ounce.
On Monday, March 18, the price of gold is $1,303 per ounce.
Jay Taylor, editor of J. Taylor's Gold, Energy & Tech Stocks, shared his views on the prospects of gold:
“In the near future, gold will surely overcome the mark of $1,350 per ounce, and then, within a year and a half or two, we can expect an increase in the price of an ounce of gold up to $1,700.”
*Volatility — in finance, the degree of variation of a trading price or a certain value over time.
*Monetary policy — the plan of actions aimed at maintaining the monetary system and ensuring the effective functioning of the economy.
*The Dow Jones Industrial Average (Dow Jones Index) — a stock market index that tracks the development of the industrial component of the US stock markets.
*DAX — the main German stock index which measures the total return on capital of the largest joint-stock companies in the country.