How High Can Gold Go for Investment?
Gold is a precious metal where many people get interested in it. With a beautiful design, this jewelry can attract more people’s attention because it is famously known to be an investment item with the profits of the owner. How high can gold go? It seems to be a well-known question before you invest in gold. The gold investment has the main benefits with the high price tendency year by year. Of course, it makes profits for the owner.
The Benefits of Investing Gold
There will be some benefits of investing in gold. You can understand it before investing in gold.
1. Easy to Sell
It becomes the first benefit of gold regarding a promising investment. The other investment types tend to be difficult to sell or change to be money. It is possibly claimed at a particular time. It is different from gold investment giving freedom to change it to be cash.
2. No Tax
It is different from having stock in a particular company. The stockholders can’t enjoy the benefit directly. Having a gold investment is a good choice if you want to build an investment with no tax.
3. Protecting Wealth
With the tendency of high price, gold is very suitable if it is called to be a protecting investment to one’s wealth. The protection of gold investment to wealth can represent the price stable and increase so that you can sell it at a higher price.
The High Price of Gold
How high can gold go? A dollar increase is usually impacting the gold price or otherwise. The price of gold has reached $2.000 per ounce in recent days. The panic and worries of investors due to the second wave of Coronavirus cause the appearing policy. A factor of panic causes much of the price of gold.
The IMF predicts that it is projecting the contraction up to 4.9% in global growth in the year 2021. Furthermore, it has a huge effect on Coronavirus. It is also influenced by the trading battle of China and the US. However, a panic condition doesn’t make investors go to gold investment if it has no other causing factors.
2. Safe Haven
The first problem is an alternative to a haven. The treasury result in the US reached 0.58%. With the core inflation of the US up to 1.2%, it is an expensive protecting value. It predicts that the real level in the US seeds to the level -0.9%.
3. High Corporation Price
Valuation of equity looks higher regarding the fundamental role. Meanwhile, the price of cooperation obligation also increases supporting the investors to select a gold market. The condition of the US and China and low corporation’s obligation make the dollar weak. The low dollar means that the chance to hold gold lower. Gold has no income so that it tends to be less interesting when it has a higher obligation.
How High Will Gold Go?
It depends on some causing factors in which the factors impact the price of dollars. But, you can still invest gold for the future because it is still promising to gain income and profits.