The financial media is ablaze with word that gold traders are acting more bullish than ever before, increasing their holdings to record levels. This large-scale accumulation of gold bullion is in response to favorable market conditions and worries over stock and currencies markets around the world. Since the price of gold is not anywhere close to what most analysts today believe it is going to hit in the current months, stocking up on the yellow metal certainly makes sense for many of the world's most powerful precious metals investors. The gold market is currently the strongest it has been in nine months, with investor confidence bolstered over speculation that central banks will be trying to make changes and improve their economies in the months ahead.
Bloomberg surveyed 35 top gold traders, with only six not currently stating that they are bullish on gold. Three of those surveyed were bearish and the same number were neutral which means that 29 of those top analysts felt that now is the time to stock up on gold bullion as a key way to diversify one's holdings. Currently, the price of gold makes it accessible to the consumer market, but recent reports by noted analysts in the media suggest that this may not be the case for much longer. Part of the reason why the gold market is being forecast to be more difficult to enter is that investors are buying on a grand scale. In the month of August 2012 alone, investors were recorded as snapping up close to 52 metric tons of gold with a value of over $2.75 billion - a massive level of purchasing unlike anything was seen in quite a while.
Other events around the world are spurring global investors to take action. Bloomberg noted that the manufacturing sector in China is continuing to see a slowing in growth, meaning that changes may need to be instituted to help the economy recover. Both the European Union and the United States are looking to make changes; the U.S. is seeking to stimulate the economy by way of the Federal Reserve and the E.U. is hoping to curtail some of its debt crisis.
To some investors, the stimulus is what matters and they are buying gold with that in mind. Bloomberg quoted London based HSBC's Charles Morris as saying, "There’s no doubt about it, this is gold’s moment. All the long-term trend signals suggest that gold is in a very strong bull market."
The question for the average investor today then, becomes whether or not now is the right time to increase their holdings in the yellow metal. Currently, the price of gold sits around $1,670 and a sharp rise in price has been forecast. This means that those who get in on the low prices stand to see the value of their portfolios increase with time. For many, that will be all the prodding they need to get bullish themselves and fortify their portfolios to be strong no matter what the rest of the world's economies end up doing.