Title: Investors’ Outlook On Gold
Now is a time of tumultuous financial change all over the world. The U.S. economy is still attempting to rebound from a lengthy recession and finally showing slight signs of improvement, and the European economy is largely in disarray, with very negative forecasts for the near future. These sorts of conditions have all sorts of investors scrambling for worthwhile opportunities, and one of the most interesting areas of focus, as far as investment opportunities go, is gold bullion www.bullionvault.com/ is something of an alternative type of investment, but in times of economic instability it is occasionally turned to as a more stable opportunity.
So, at a time at which financial systems are remarkably unstable, what are major investors saying about the gold market? As recently as February of 2012, gold looked like a very promising investment opportunity, as its price reached its highest point in several months. This had many investors convinced of a strong trend in gold prices, which had actually been predicted in initial outlooks for 2012. However, the promising, high-priced February was followed almost immediately with a sharp dip in prices in May, which has led to a more complicated outlook for gold, and a bit more uncertainty when it comes to investor opinions. It seems, in fact, that some have been scared away from gold investment for the time being, while others are looking to potentially positive signs indicative of a rebound.
Worth noting in any discussion on gold investment is that the price of gold tends to operate with a somewhat inverse relationship to the U.S. dollar. This means that when the dollar is weak, gold tends to be something of a financial safe haven, and the price rises. Similarly, the reverse is often true. Additionally, gold can sometimes have similar relations to the Euro, and in general is influenced mostly by the American and European economies.
With that said, the U.S. dollar has shown signs of strengthening in the first half of 2012, and this could be said to be one reason that gold has begun to look somewhat shaky. As the U.S. dollar has strengthened, the Euro has weakened considerably, and this had some investors hopeful that the gold price would remain high as people moved their finances from the Euro to gold bullion. However, it appears that the majority of people moving their assets are instead choosing to trust the dollar, leaving both the Euro and Gold in weakened positions. Again, the price of gold is very difficult to predict over time, but these sorts of trends suggest that in the near future – particularly as the U.S. economy and the dollar strengthen – gold may not be as stable as usual.
This is a guest post on behalf of Bullion Vault by freelance writer Brad Turner. Brad has written on numerous topics related to investment opportunities.