Helpful miscellaneous articles
regarding our retirement plan and planning.
Like you, I review my retirement nestegg and plan from time to
time. Recently, I went though some continued
education for some credentials I maintain and it occurred to me that we all
could use a review about these issues.
So with your help, we will share and post articles and info that may be
helpful and of interest to many of you in this section.
How high will the price of gold go?
Here's what some experts think
By
Tim
Maxwell
Edited
By
Angelica
Leicht
March
27, 2024 / 9:20 AM EDT / CBS News
Investor interest
in gold is rising, which isn't surprising given persistent inflation and
elevated interest
rates continue
to drag on the economy. Historically, gold tends to perform well during periods
of economic uncertainty, as investors look for a hedge
against inflation and a stabilizing asset to add to their portfolios.
Indeed, investors are turning to the safety of
gold in large numbers, driving its price to an all-time high of $2,125.89 this
past December. That mark was surpassed earlier this month with gold trading
at $2,160
per troy ounce, and most recently, gold's price hit $2,170.16 on March 22.
Investors considering the precious metal, then,
would be served by understanding where the price of gold could be heading.
Below, we'll take a closer look at what's behind gold's rising price
trend and just how high the price
of gold will
go.
How high will the price of
gold go?
To understand how far the price of gold can
potentially rise, it's important to know why it recently hit all-time
highs.
A recent
J.P. Morgan report attributes gold's surging prices in late 2023 to a
confluence of factors, including increased purchases from central banks, rising
concerns over geopolitical conflicts in the Middle East and Eastern Europe,
inflation and anticipated Federal Reserve interest rate cuts.
Certainly, economists and precious metals
analysts largely agree that uncertainty in many sectors is leading the flight
to gold.
"Let's start macro, gold is your safety
play, so the more people feel nervous or uncertain, the more gold is viewed as
a safe haven," says Matt Willer, a Phoenix Capital Group Holdings partner
in Denver, Colorado. "The reality is we are littered with uncertainty. We
have the tail of inflation, tension around the world, an election year [and]
elevated interest rates, which all perpetuate the flow of funds into
gold."
Similarly, Eric Croak, CFP and president of
Croak Capital, a wealth management firm in Toledo, Ohio, says a
"combination of specific factors" have spurred gold's soaring price,
but one factor may weigh more heavily.
"The recent surge in gold prices is
primarily driven by softer U.S. economic indicators," says Croak.
"These market conditions have boosted gold's demand while diminishing the
demand for other commodities. This is largely due to the higher level of trust
placed in assets like gold, silver and diamonds compared to other investment
options."
(As with any of these informative articles,
anyone who needs someone to talk to about
this
very subject contact me and I can direct you to a knowledgeable advisor).
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