The Precious Metal Rally:
Written by: Physicalgold.com
There has been a surge in interest in the precious metal markets lately. Many investors across the world are searching high and low to find value, and gold and silver are providing one of the few options available. The stock market and property prices are feeling the effects of continuing inflation and a slowing global economy, and this has helped to create a rally in the precious metal markets. Here are just a few of the reasons why.
The Collapse Of The Property Market
After a mid-pandemic boom, the property market is falling in value and the forecast for the future is not bright. Interest rates are slowly rising, and the prices of property of all types across the UK are falling. This is on top of the cost of living crisis that is sweeping Europe, which is only compounding the pressure on house prices, making the future look gloomy for the property market. This is forcing investors to look for somewhere more stable to put their money.
Owning physical precious metals is a tried and tested hedge against economic uncertainty. Gold and silver, in particular, are historically popular ways to invest money when stock markets and property markets become stagnant or start to lose their value. During economic pressures after the credit crunch of 2007, and the inflation spike of the early 1970s, gold prices soared as investors of every size switched focus to precious metals.
Today, the gold market is experiencing another surge in value as currency inflation shows no signs of abatement and property values shrink. The precious metal experts at Physical Gold can help any investor put money into gold bars. These can be transferred to their possession or stored securely by Physical Gold while the price rises over time. Good dealers should be able to advise on which bars or coins to purchase to best meet your investment circumstances and objectives.
The Rallying Cry
Late in 2022, many investors started to make the switch to precious metals and the effect of this was seen immediately in the markets. The price of gold has been on an upward trend throughout the last quarter of 2022, and the renewed interest in gold investment shows no signs of stopping. Not only is the renewed demand for physical gold helping to push up the price, but so are economic forces across the globe.
The continued inflation in both Europe and the United States is softening the value of currencies. The US, EU, and UK governments have all taken measures to tackle inflation and none have had a positive effect. This is on the back of a cost of living crisis that has a firm grip on European consumers, forcing people to cut back on spending. Weak currencies and reduced consumer spending make commodities one of the few places investors can turn to for value.
To compound these effects, China is reopening. After a long period of a zero-covid policy that has kept Chinese workers and consumers in their homes, production levels are now starting to return to normal.
China has always been bullish on gold investments. As the country reopens, so will its demand for physical gold investment, helping to drive the value of precious metals on the global markets. In fact the Chinese Central Bank has been steadily increasing its own gold holdings at the start of 2023.This Central Bank buying trend is likely to continue as more countries try to reduce their reliance on holding national reserves in Dollars,
Light At The End Of The Tunnel
Precious metals, in particular physical gold assets, have a brighter future ahead of them than currency, stocks, and property as there is no light at the end of the inflation tunnel. The world’s largest economies are struggling to handle the economic downturn that has followed their pandemic spending policies. The Western world has taken on huge levels of debt that it used to fund furlough schemes during social lockdowns and the vaccination drives that helped eventually end the lockdowns.
The United States is the perfect example of these problems. Huge amounts of money were invested in keeping businesses and families afloat during the pandemic, and in vaccination efforts to help reopen the country. In the wake of these expenses, the US government passed the Inflation Reduction Act which has so far failed to seriously halt inflation. Without a light at the end of the tunnel, investors are understandably turning to precious metals for stability as well as value.
Until some big changes come in monetary policy on both sides of the Atlantic, inflation is here to stay. This is helping to make precious metals an even more attractive investment, and for the long term too. Forecasting for 2023 looks bleak on the property market, and the stock market remains stagnant with little sign of reprieve for investors. Precious metals are now becoming the focus of investment portfolios and not just a hedge. The unpredictable and extreme events of the past few years have shifted public mentality as to what is possible. The prospect of banks and even major currencies collapsing is now a very real consideration, leading to more interest in precious metals.
If you’re looking for an investment in 2023 or beyond, you should investigate precious metals. There is a huge amount of interest in the gold and silver markets, and few options available for sensible and stable investments elsewhere. Continuing inflation, conflicts across the world, and a cost of living crisis in Europe almost guarantee a steady rise in the price of gold and silver. The outlook for property prices and the stock market is much less rosy, with many investors struggling to see an end to the economic downturn.
Until some big changes come in monetary policy on both sides of the Atlantic, inflation is here to stay. This is helping to make precious metals an even more attractive investment, and for the long term too. Forecasting for 2023 looks bleak on the property market, and the stock market remains stagnant with little sign of reprieve for investors. Precious metals are now becoming the focus of investment portfolios and not just a hedge. The unpredictable and extreme events of the past few years have shifted public mentality as to what is possible. The prospect of banks and even major currencies collapsing is now a very real consideration, leading to more interest in precious metals.
If you’re looking for an investment in 2023 or beyond, you should investigate precious metals. There is a huge amount of interest in the gold and silver markets, and few options available for sensible and stable investments elsewhere. Continuing inflation, conflicts across the world, and a cost of living crisis in Europe almost guarantee a steady rise in the price of gold and silver. The outlook for property prices and the stock market is much less rosy, with many investors struggling to see an end to the economic downturn.
