As gold hit a15 month high of $1,270 in May of 2016, gold investors started to question whether or not the rally would continue. And while setting an exact gold price can be extremely difficult, based on what’s going on in the political arena, the economy and the investment world, it’s safe to say the price of gold is only going to continue to rise.
Here are two reasons you can expect the price of gold to continue to rise in 2016 and beyond.
#1 – Demand
Demand rules all. The more people want something, the higher in price it will go. In the first quarter of 2016 the demand for gold grew by 21% over the previous year. This growth was spurred by the rise in investment demand from ETF’s or exchange traded funds. While ETF’s had a sharp sell off in the previous two years, the 364 tonnes of inflows in the first quarter of 2016 more than compensated for what was lost during 2014 and 2015.
#2 – Bullish Sentiment From Very Wealthy Investors
At the Sohn Investment Conference in May 2016, Billionaire investor Stanley Druckenmiller advised investors to get away from the stock market right now and start investing more in gold. He also confirmed that gold is his largest currency allocation.
This sentiment is in line with what Michael Lewitt from Money Morning predicted. He believes there is going to be a “Super Crash” in the near future that will decimate not only portfolios, but retirement accounts as well. And if you know Michael Lewitt’s track record you know he is rarely wrong in these types of situations.
As a matter of fact, he correctly predicted what took place in the markets in 2001 and 2008. He knew what was going to happen even before Wall Street did. In his new 2016 Gold Briefing report Lewitt was quoted as saying, “Right now, I’m seeing another bear market on the horizon.” He also warned investors of a market collapse that will be one of the biggest they have ever seen and will ever see in their lifetime.
Don’t Wait Until It’s Too Late
With demand rising and billionaire investors being bullish on Gold, now is the perfect time to invest. It is the single best investment you could ever make. Not only can it protect you from inflation, but it can also protect you in the event of a stock market crash. Invest now so you can benefit as gold continues to rally.
Copyright 2016 Economic News Articles