Is This The Right Time To Invest In Precious Metals?

Precious Metals


With so many investment options around, investors are going crazy. Bitcoin, Litecoin, real estate, gold, silver, stock markets, debt instruments- all of these are tempting the lay and institutional investors. The emergence of crypto-currencies has made the game even more complex. At last count, there were more than 2,000 currencies in the crypto market. Investors who have made significant investments in the energy market are now backing away what with the OPEC economy cracking up.

However, wise investors still consider precious metals attractive. Gold and silver have and will continue to bedazzle finance and investment professionals.

A golden performance

According to Investing News, gold touched its all time high in January 2018. At that time, it was being traded at $ 1,357.70. Over the next few months, this metal kept on attaining new highs but dropped down to more realistic levels later. Experts say that gold could have performed worse in the latter part of 2018. It touched $1,240 at the close of the year.

Given this volatile performance of the metal, gold is still the best thing to buy in 2019. Here’s why.

  1. Geopolitical tension

Gold is a ‘crisis currency’ for migrants. This year, global tension will remain at previous levels. People from Syria and other countries will continue to migrate to Europe and the United States and they will carry gold in their pockets. Gold will insure them against economic hardships.

  1. Interest rates

Last year, gold lost its sheen because the U.S. Federal Reserve raised its interest rates several times.

This year, the American central banker is not expected to increase the interest rates. Brian Leni, founder of Junior Stock Review, says that the Federal Reserve might even rein in the interest rates in February 2019 to stop the slide of the American economy. Leni’s views are shared by Goldman Sachs as well.

If the rates don’t rise then this is good news for prospective investors of gold. They should buy the yellow metal now.

  1. A dipping greenback

Currently, the U.S. dollar is one of the strongest currencies in the world. But would it continue to lead the other currencies in 2019 as well?

Experts aren’t sure. The U.S. trade balance is rising and this will weaken the dollar in the medium to long term. What does this mean to the investors?

Buy gold. The price of gold is inversely proportional to the strength of the U.S. dollar. Investment experts say that when it comes to financial stability, ‘ gold ticks all the asset classes’.

Investing in gold coins and jewellery is a widespread practice that people have followed for years, and with technology being there to make the processes more convenient, visionary minds now prefer to do their homework beforehand online before landing their choice on online buying platforms like Gold Stackers Australia that offers convenience and assurance.

Moreover, it is no longer a secret that the prices of gold have been going in the same direction for the last 70 years! So, it makes great sense to invest in this metal also.

  1. Supply led scarcity

Much of the gold that is presently available in the international markets comes from two sources- the sale of the yellow metal by the central banks and mining activity.

Most major gold mines have been going slow for the past few years. Less and less gold is now coming to the markets, as a result. This trend will continue for a few more years. This is a good opportunity for investors to buy gold.

It is expected that yellow metal prices will go up to $2,000 or something like that in the next 3-4 years. Retail investors like you and me can book some future profits by buying bullion from some Australian companies.

  1. Outlook for Silver 2019

According to many metal traders, the performance of silver mirrors that of gold. In 2018, the former put in a weak show but 2019 promises to be a new story altogether.

  1. Experts feel that silver should do better this year because of an improvement in the automotive and electronic markets. Silver is also used in solar equipment and last year, the metal received some heavy weather because of the US-China trade war.

Now that the tension has abated, expect silver to perform better in 2019.

  1. Additionally, silver will also benefit from a declining U.S. dollar. Investors should start buying this precious metal now to derive future windfalls.


2019 promises to be a profitable year for gold and silver investors. The U.S. dollar might weaken this year to take care of the trade gap and this is a good reason to buy these precious metals.