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From the investment giant, Goldman Sachs’, prediction of depleted gold supply and production, and the Fed’s potential interest rate hike this year—now is the perfect time to invest in Gold—and here’s why.
Analysis by Goldman shows that supply of gold is on the decline, and the basic economic principle of supply and demand will work in the favor of the shiny yellow metal. While we won’t be seeing the side effects of the dwindling supply of gold quite yet, future holdings look promising. Question is: Where are your assets going to be when the supply of gold cannot meet the worldwide demand?
The Federal Reserve’s decision to raise interest rates either in June, or September favors a strong dollar. When there’s a strong dollar, more investors choose riskier assets that have a chance of yielding higher returns and the interest in gold, which does not have the same appeal, dwindles. With hundreds of analysts predicting completely different outcomes—the only certainty is uncertainty. With gold prices lowering during all the rhetoric and inaction, now is the perfect time to invest in the asset that has time and time again proven to be a financial boon.