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Many RIAs Urge Investment in Gold, Price Could Double or Triple

July 19, 2016290 view(s)

Any well-constructed portfolio should include some exposure to gold according to Trevor Sykes of the Financial Review. The Wealth Daily website believes, “All indicators right now are pointing to a surge in the price of gold in 2016 with experts predicting a new bull run that could double, even triple, prices-and in a very short amount of time.”

Sykes cited that governments around the world have printed too much paper money which has devalued their currency against gold and the record low bond yields of Western countries as reason to be optimistic about gold.

Registered investment advisors (RIAs) are advising clients to put money into alternatives to stocks and bonds to protect against market volatility or a downturn. The perceived weak U.S. economy and the Federal Reserve who constantly change their position on rate hikes are the reasons behind the recommendation to diversify investment portfolios with precious metals like gold.

DBS Group Holdings, LTD., who predicted gold’s rally this year, believes gold may surge to more than $1,500 per Troy ounce. The uncertain U.S. presidential election is one of the underlying factors of the major bull market for gold according to the bank’s foreign exchange strategist, Benjamin Wong. The election may cause the Federal Reserve to hold off raising interest rates in September or November, benefiting gold.

Francisco Blanch, head of commodities research at Bank of America Merrill Lynch, also acknowledged the presidential election as a reason to be bullish on gold. “The next few weeks, as the political debate heats up in the U.S., the support for gold is going to increase,” according to Blanch.

RBC Capital Markets, a Canadian investment bank that is part of the Royal Bank of Canada, is also optimistic about gold. Analysts predict a calling price of $1,500 in 2017 and 2018. According to RBC Capital Markets, “Our technical outlook suggests that the next bull market is under way, and weakness is viewed as a buying opportunity.”

Five forces are driving the price of gold according to an article by Kate Palmer posted on The Telegraph. Palmer states the Brexit vote, low interest rates, lack of demand for the dollar, the possible collapse of the Eurozone, and an “insatiable” demand for gold in China are all reasons for optimism in investing in gold.

There are many reasons to be optimistic about investing in gold and other precious metals. The U.S. Gold Bureau is proud to feature the Ed Moy Signature Series Gold American Eagle Proof 70 coins, gold bars, silver coins and bars, other precious metals, and investment grade diamonds to help clients diversify their investment portfolios with precious metals and within precious metals. Gold and silver can now be put into your IRA account and stored at your home. Speak directly with an Investment Specialist by calling (800) 775-3504.

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