Why gold could rise for the next 10 years:
Contrary to popular opinion, gold and silver are not hedges against a crisis. In fact, a crisis may cause all salable assets, including precious metals, to be sold in order to get cash., we believe a good recent example is the 2008 global crisis. Gold plunged 31% as credit tightened, the crisis accelerated and a rush to cash from all assets commenced. That was painful for bulls who didn’t know that a credit crisis causes all assets to plunge.
Gold has been widely ignored since 2011 as an asset class for institutional portfolios. However, that should change as most other asset classes deteriorate and become unattractive for a while. With long-term bullish sentiment on the precious metals so low until late 2018, and the gold price in terms of many foreign currencies already near or at new record highs, it’s only a matter of time before the U.S. dollar price of gold shoots upward. Although the very short term may see more of a pullback, the long-term factors are very constructive.In 2018, bullish sentiment for gold and silver was at a multi-year low. Very few people were interested.
The fact that speculators, i.e. non-commercials, had record short positions in 2018 confirms that a lot of short covering may occur, to be followed by actual buying. That would mean greater demand.The bottom in the precious metals has been forming since early 2016. As you can see from the chart below of the ETF for the gold miners,, it had a quick rally that year and then went into another sideways pattern until January 2019.
United States Latest News, United States Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Tesla isn't the next Theranos — here are 10 reasons whyOPINION: The Tesla-Theranos comparison, like the Tesla-Enron comparison, makes for fiery debates, but the comparison falls apart on closer scrutiny.
Read more »
Why Apple was so upset with Qualcomm — and why it finally had to give inApple buys modem chips from companies like Qualcomm to enable the iPhone to connect to cellular networks.
Read more »
10 Things We Absolutely Need To See In 'Avengers: Endgame'10 Plot Points We Need To See In 'Avengers: Endgame'
Read more »
These are the 10 richest pets in the worldKarl Lagerfeld’s cat Choupette could be joining the elite pets on Compare the Market’s 2018 Pet Rich List.
Read more »
Uber spent $3.3 billion on acquisitions in 2018 and 2019 — 10-times more than LyftThe ride-hailing company Uber, which officially filed to go public on Thursday, went on a shopping spree ahead of its IPO.
Read more »
These 10 U.S. Cities Have The Most Successful Women Per CapitaSome cities offer better conditions for women to thrive professionally, which can potentially help them more easily reach their financial goals, like saving for retirement, paying off student loans or purchasing a home.
Read more »
Kofi Kingston And The 10 Loudest Pops Of WWE WrestleMania Weekend Based On Decibel LevelsWhere did Kofi Kingston, John Cena, Becky Lynch and others rank on the list of loudest pops from WrestleMania weekend?
Read more »
INTRODUCING: The 10 people transforming financeBI named 10 finance executives to our list of the 100 people transforming business. The list includes the first female president of the New York Stock Exchange, a founder building Wall Street's new operating system, and an exec disrupting JPMorgan.
Read more »