2017 the year of the Gold shelter?
The year has already been trending with Politicians aiming to bash Central Banks and as this critique grows, investors could be looking to seek haven in Gold, especially a reasoning behind the spur above $1,200 per oz yesterday. Could this year be the turning point of the bear?
Investors are banking on the demand for Gold rising as political intervention could cause central banks to miss growth targets. Jim Rickards, author of the famous Currency Wars remains even more bullish on Gold as he expects a 10%+ rise in the first quarter of 2017.
For those who lose faith in central banks, gold may be the last holdout. It retains its appeal as an asset that once underwrote the monetary system and it can’t be created at will like currencies and bonds, said Matthew Turner, a Macquarie Group Ltd. economist.
Gold used to be the centre of the global financial system, for that reason it has a reputation as a currency, however people are confused as to how Trump’s policies will actually impact the Precious metal markets.
Since his election, money managers have been pulling money out of SPDR Gold Shares, the world’s largest gold-backed exchange-traded fund, as they seek bigger returns in stocks. At the same time, retail investors have been flooding into the iShares Gold Trust. Gold has risen 6.7 percent since hitting a 10-month low on Dec. 15 and was at $1,197.67 an ounce Friday. The trend for Gold buying looks pretty safe for the long-term.
