Gold’s ability to act as a safe haven asset is unparalleled. Experienced investors have known about that for centuries, which is why gold has always performed so well during times of economic crisis. During the 2007-2009 stock market crash stock markets lost over 50% of their value, while gold gained 25% and continued to rise.
A repeat of that performance is highly likely in 2019 and beyond. Demand for gold has already begun to increase this year as a whole host of potentially negative events have begun to occur. Those include:
- The likelihood of a hard Brexit this year, which will drive up gold demand both in the UK and in continental Europe;
- Continued weakness in the German economy;
- The prospect of a banking crisis in Italy;
- The expectation of a heightened trade war with China; and
- Continued fears of a major stock market crash.
Add to that uncertainty about the health of the US economy, the higher cost of mining gold today, and reduced investment in mining activity and you have a perfect storm of factors ready to push gold explosively higher. With rising demand and flattening or diminishing supply, gold is poised to make big gains.
If the economy enters recession this year, don’t be surprised to see another 25% gain for gold. Over the longer term gold will likely challenge or surpass its all-time highs, while stocks and bonds will likely perform poorly for the next several years.
That means that there’s no better time to invest in gold than right now. Investing in gold today will reap benefits once stock markets begin to decline, and will continue to benefit you well into the future. Millions of people wished they had invested in gold before the financial crisis, and they’re still kicking themselves for not doing so.
Do you want to look back five years from now and wish that you had invested in gold, or would you rather enjoy your retirement in comfort, knowing that your assets are being protected by gold? The choice should be obvious.
This article was originally posted on Goldco.
