Gold Price Set to Soar?
Friday, May 15, 2015, by Andy Thornley, comments 0
On the 12th September 2011 gold reached a peak of £37.40 gram, since then the value has steadily fallen to £25.00 a gram. There are a number of factors at play, which may cause the price to rise from this stable base.
- First of all the Chinese people are buying gold either in bars, coins or jewellery as a store of value.
- Gold has always provided some insulation against inflation and with every government now printing money to keep recession at bay inflation at some point in the future will take off.
- People want to replace the gold they sold during the recession.
- The stock markets are trading at all time highs as investors search for returns greater than cash on deposit, many pundits say this cannot continue, when the market falls it is possible that investors will buy gold as they did in 2008.
All in all there is not much downside to the price of gold an d a great deal of potential upside.