Gold Price in Uptrend, for Years Now
In the last couple of weeks, silver skyrocketed, and gold also surged close to its multi-year high in April by 1,788.80 USD. (Gold price is fighting with the $1,700 level and silver, the $18 peak at the time of writing.) The reason was simple, the renewed expectations that the US and other countries need more economic stimulus. The Federal Reserve started unprecedented measures earlier to boost liquidity. Also called “unlimited quantitative easing” – money printing, in fact. Very bullish for the precious metals, for the gold price in the first place. Some investors are expecting negative interest rates already in the US or the UK.
In the last 12 months, the gold price surged 24 percent, silver, 15 percent. The yellow metal is moving in an uptrend for over four years, from December 2015. (From the bottom near $1,050.) Also, hedge funds and prominent investing professionals often declared a positive view of the future of the gold price. (We wrote about a possible surge in gold, silver prices. See Are We Facing Epic Inflation, Horrific Real Interest, and Brutal Gold Price Explosion?)
How to Buy Gold In Physical Form?
There are about a dozen ways to buy gold, silver, or gain exposure to the precious metal prices. These can be divided into main groups, such as physical gold, paper gold, and gold mines. All forms have advantages and disadvantages. Prices and risks, liquidity are different by all investment types. (See this post about the “magic triangle”.) Physical bars, bullions, jewelry, and coins can be robbed, for example. “Paper gold”, different ETF-s, other shares have “counterparty risks” –that means the issuer can go bankrupt. And derivatives are extremely risky. This time, we will detail the physical gold investment forms.
Physical gold assets are bars (bullions), coins, jewelry and scrap gold (mostly used, broken jewelry). For a better overview, we created the tabs “Pros”, “Cons” and “Issues and Risks” by all subtopics. Most of the facts about gold apply also to silver, platinum, and sometimes palladium investments. Silver, platinum, and palladium demand is industrial in the large part. But these metals are also available as investment products or jewelry.