Buy low and sell high is what most investors want to do. And right now may be the right time to buy gold before it starts to climb again. Last year provided a great opportunity for investors to add to their gold holdings, as the yellow metal dipped at one point below $1,200 per ounce. But a significant recovery late last year into the early part of this year saw gold climb towards $1,350 before retrenching. With $1,300 looking to be the floor right now, there’s every reason to expect gold to hit $1,400 or more this year.
Numerous gold industry professionals see the case for gold as incredibly bullish, including gold ETF managers. According to Will Rhind of GraniteShares, there are numerous reasons that gold demand is set to spike in 2019, including:
- Slow global growth, leading to increased gold demand from those looking to hedge against market losses;
- Increased gold demand in China, both from government buying and retail investors looking to protect themselves against higher inflation;
- Limited gold production capacity due to a lack of exploration and a trend of mega-mergers among mining companies.
All of that makes for a very compelling case for the gold price to skyrocket over the next few years. As economic conditions continue to deteriorate in the US and China, with increasing uncertainty in Europe over Brexit and the German economic slowdown, and as central banks look set to jump back in to keep their economies from stumbling, the case for buying gold has never been better.
As usual, the best time to buy was yesterday. Last year’s lows were an anomaly and we likely won’t see prices that low ever again. The recent retracing is also showing signs of being a one-time deal as gold continues its rise upward for the rest of 2019. Investors who take advantage of dips to build up their gold holdings will thank themselves a year or two down the road when they see just how much their gold investments have gained in value.