Knowing that there was a time when this extremely rare precious metal was the basis for most, if not all, currencies around the world makes it highly attractive as an investment product. After all, there is only so much to go around and since it is still much in demand for global currency reserves, jewelry and for certain scientific uses, it is now and forecast to always remain in high demand. However, that alone isn’t enough to base a decision on whether or not you should be investing in gold. Yes, it is the most precious of the noble metals and yes it is the rarest and hardest to come by, but what other factors should be present for gold to be a good investment?
The first thing you should look at is the market, that is to say the economy. Like any other investment product, you need to understand the market in order to determine if and when to invest. Whether or not you choose 2016 to begin investing in gold should be based on market conditions, plain and simple. So then, let’s take a look at current market conditions around the world and then look again at whether or not it is a good idea to invest in gold in 2016.
All Eyes Are on the United States
One thing that many people aren’t aware of is the fact that the value of gold is inversely proportionate to the value of the US dollar. If the dollar in the United States is strong, the price of gold plummets accordingly. If the US dollar is weak, the value of gold rises in proportion as well. This is on a global level too as other countries are likewise directly tied into the United States economy. The USD is not only the most traded currency on the Forex market but is also considered to be the strongest currency historically. Around the world the price of gold is highly dependent on the US economy. So that’s where you should begin looking if you want to know if 2016 is a good year to invest in gold.
Predictions on the Rapid Decline of the USD in 2016
According to most analysts, the USD is heading for a major fall. In fact, many market analysts forecast the US economy to plummet much faster than expected. So what does this mean in terms of buying gold in 2016? Bearing in mind that as the value of the dollar goes up the value of gold goes down and vice versa. This means that if the United States economy goes bust then the value, and price, of gold will soar. However, it is important to also keep in mind that this will almost certainly have a snowball effect on many other economies around the globe. What is being forecast for 2016 is a global recession of historic proportions making the most recent ‘crash’ in 2008 seem like a walk in the park.
Worrying Signs Not to Be Ignored – Instability in the Global Market
Bearing in mind that the price of gold has a proportionate relationship to the value of the USD, most analysts are actually forecasting the price of gold to reach historic highs as the USD is forecast to reach historic lows. But this is not the only worrying factor that has many market analysts on the edge of their seats. As reported by the BBC in November of 2015, OECD (Organization for Economic Co-operation and Development) states that the world economy is definitely slowing down no matter what heads of state would have you believe. Here again, we call attention to the fact that other economies are largely dependent on that of the United States, so it stands to reason that if the giant superpower falls so too do numerous global economies, too many to count.
In addition to worries over the economy in the United States, China’s economic problems have been making headlines for months. As another of the world’s leading economies, second only to the United States, this is a huge cause for concern. In the past they had overtaken the US in some areas but because the United States GDP has remained so strong, at least to date, they were still staggering to follow in second place. With news of their market crash in the latter part of last year, concern is now more than doubled because the two leading economies are forecast to plummet.
What Does This All Mean for Investing in Gold in 2016?
It keeps going back to the fact that the price of gold will continue to rise as the value of the USD declines. Since all forecasts look to a more rapid than expected decline in the USD, then it can be assumed that the price of gold will rise. Fortunately for those intent on investing in gold, it is further thought that the concerns over the United States economy will send the price of gold skyrocketing as investors verge on panic looking for somewhere safe to place their money.
The only downside to all this is that few people have massive amounts of money to invest at this time. Remember that we are supposedly just rising out of the latest recession. Investors would be wise to consider buying gold, even in smaller amounts, to begin accumulating something of real value as opposed to putting their hard earned money into accounts that are only backed by government reserves and money that is set to decline by the day.
Spending vs. Savings – At BitGold You Decide
At BitGold you can find real reviews from people who had little to invest at first but are basking in the security of knowing their gold is safely stored for them. Their gold can be used to make payments, as a transfer to their bank or spent with an optional BitGold MasterCard. Any gold they have purchased can be also be sold at prices within 1% of the current trading price. Are you looking to invest in gold? Start out with smaller amounts at BitGold and watch your value grow as the dollar declines.
Spend your gold any time you’d like or continue growing your savings. It’s up to you at BitGold but the one thing you can always count on is that there is real gold being held in your account and unlike paper reserves, you have real value in real gold. Remember, the only impact a recession will have is to increase your net worth so in the end is 2016 a good year to invest in gold? The answer is quite simple! There has never been a better time to buy gold based on all market indicators. Looking to buy gold? You came to the right place.
from BitgoldReview.org http://www.bitgoldreview.org/good-idea-invest-gold-2016/