Gold Is Hitting All-Time Highs
It looks like gold has been hitting highs as of late. Early Monday, it hit a record high, reaching $1,944 an ounce. The previous record was set back in September 2011. So it’s been a while since gold has seen this kind of surge. So far this year, the precious metal has been up 27%.
Let’s talk a little bit about what’s been going on and some factors that have contributed to gold’s surge.
I don’t need to tell you that 2020 has been filled with uncertainty. It’s been a heavy year, with a lot of issues being thrown at us. I’m talking every day; something new comes up while we’re still dealing with the other issues.
Amid growing uncertainties and mounting issues, investors are grasping for safety, somewhere to put their money as the future gets bleaker. It appears the coronavirus isn’t going away anytime soon, so it’s time to make smart moves to ensure that you’re ready for those bleaker times.
Gold has been seen as a safety measure, especially when times are tough. Stephen Innes, a chief global markets strategist at AxiCrop, noted:
Gold is the clear beneficiary of safe-haven demand.
Can you blame investors for wanting safer assets right now?
Joshua Rotbart, a managing partner at precious metals dealer J. Rotbart & Co., has predicted that gold prices will go beyond the $2,000 mark by the end of the year. He said in a recent interview:
Investors are nervous, they are afraid. There’s a fear factor, and they are rushing to gold.
A lot has happened in the U.S. this year to contribute to these fears. There was the start of the coronavirus pandemic that brought most of the country to a halt for about three months. Then, around the end of June, when the U.S. started to reopen, it quickly began to see coronavirus cases and deaths pick back up. Some states are seeing cases surge even higher than what was seen at the beginning of the pandemic.
This uptick in cases indicates that maybe the U.S. didn’t have total control over this virus after all. On top of dealing with a pandemic, tensions between the U.S. and China picked back up. U.S. Secretary of State Mike Pompeo criticized China in a speech on Thursday, indicating that Washington will no longer tolerate Beijing’s attempts at global control. These tensions have only deepened, with both countries closing consulates.
Then, there are still people in the U.S. who are jobless — 30 million or more — and that number will most likely continue to grow as long as the coronavirus ravages the country. The mandate that added an extra $600 to unemployment benefits ended last week and most likely won’t be renewed in this next stimulus package, which could reduce any kind of additional spending, further slowing the economy.
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It contains full details on something incredibly important that''s unfolding and affecting how gold is classified as an investment..
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So while all these uncertainties continue to linger, gold seems more and more appealing to investors. Gold has always been a way of diversifying risk. That’s why gold is surging and analysts expect it to go even higher. Analysts at UBS, expect gold to reach at least $2,000 before the end of the year. That price point could be higher if the U.S. decides to move interest rates below zero.
Naeem Aslam, a chief market analyst at Avatrade, said:
Today it is all about gold prices and bulls are celebrating the fact that the gold price has hit an all-time high. The next big target is the 2,000 level and this can happen this week as we have the Federal Reserve’s meeting. The anticipation is that the Fed is going to send another dovish message and that is likely to bring more weakness in the gold price.
Gold might not have been on your radar until today, and that’s okay. What’s important is now it is.
If gold wasn't on your radar until recently, there's probably something else you haven’t heard about... a $0.50 miner that just discovered America’s biggest gold mine.
It's okay, not a lot of Americans are aware of this huge gold opportunity. There are about 6 million ounces of gold in this mine right now, which makes it the biggest one in America. This mine contains one of the highest grades of gold, and it is easy to extract, with minimal environmental impact.
Find out the name of this miner and how you could get started in gold.
Until next time,
Monica Savaglia is Wealth Daily’s IPO specialist. With passion and knowledge, she wants to open up the world of IPOs and their long-term potential to everyday investors. She does this through her newsletter IPO Authority, a one-stop resource for everything IPO. She also contributes regularly to the Wealth Daily e-letter. To learn more about Monica, click here.
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