By Josh Saul
2016 has been a year with surprises in abundance, with a variety of world events with complex effects on economies, currencies and stock markets. From the United Kingdom’s decision to leave the European Union via Brexit, to India’s reform of high-value Rupee banknote circulation, the election of new US President Donald Trump and the pervasive low oil prices underpinning the entire year – 2016 was an eventful time that has left 2017 with quite the question mark hanging overhead.
Can the opportunities and challenges left in the wake of 2016’s events foster confidence among investors? 2017 will surely bring its own surprises, but those investing in gold are likely to be looking at a year of record highs.
Investors in gold, be it through gold bullion or gold coins, saw a year with twists and turns but an overall positive trend. The election of Donald Trump as United States President saw prices soar then dip and stabilise, with the world’s stock markets torn between uncertainty and the promises of a new America. While the situation continues to be unpredictable, the overall outlook for gold is a healthy one.
Speaking to Investor News, analyst David Morton announced that 2017’s gold prices will continue to rise, creating a ripe opportunity to invest ahead of the curve. “To preserve your financial health, you will need the precious metals at some point in your life”, he suggests.
Gold’s status as an investment where wealth can be locked away from the fluctuations of uncertain times is well documented, and it’s encouraging to discover that not even the most unexpected of 2016’s events have disrupted that promise for 2017.
The short term view
Gold thrives on providing what’s known as a safe haven investment, which leads to uncertain political climates raising demand for physical gold, and therefore its price.
While the events of 2016 are set in stone, there is much more in the way of electoral consideration underway for 2017 in Europe. As the Wall Street Journal has reported, elections and other political events in Italy, Germany, France and The Netherlands give pundits across the eurozone plenty to consider, and it is expected that the number of people investing in gold will rise in the wake of those eventualities.
In fact, Reuters echoes the optimism being felt by analysts in gold, and also highlights silver as another precious metal enjoying a resurgence in interest. Both gold and silver are predicted to enjoy their strongest prices for some time during 2017.
The long term view
Gold is where you put your wealth to make it work for you, safe in the knowledge that what you’ve strived to build is secured from political events and currency fluctuations. Gold’s appeal during uncertain periods, as well as its increased desirability in the physical form from growing super-economies like India and China, mean that analysts are forecasting that 2017 will be a positive year for those with investments in gold.
The interest that physical gold investment has garnered recently speaks volumes. Yet discerning investors realise that those flash reactions are not as true an indicator of the signs of our times as a long-term approach. Indeed, gold is an investment to be made for those of us looking for a secure and confident future for our legacies, loved ones and financial interests.
The evidence suggests that a gold investment would provide a solid start to 2017, as well as providing the foundation on which to continue building your financial profile, whatever the year brings. Whether you’re an experienced precious metals investor or looking to enter the field for the first time, consider letting the ease and security of the process make gold your go-to investment option for both this year and those to come.