Gold continues to be a safe haven
Gold begins to lose its property of a commodity and becomes more and more currency, which is not really suitable for the current world economy , that’s reason some experts on precious metals market .
Some analysts also took the view that gold is now starting to behave more as a currency , and difficult to predict , as in the future it will change the nature of the raw materials in the long term .
Gold prices are a reflection of how great the people’s trust in the purchasing power of paper currencies . The financial crisis that began with the first private companies , and then spread to the individual countries and even regions , and continues to grow.
Gold also acts as a ” safe asset ” for investors in times of economic uncertainty and financial crises. When things are going well in the business and future prospects look nice , then no one even thinks to invest their money in gold. But when the opposite is true , investors are turning their attention to the ” noble metal “.
But in the current world economic situation , when the largest economy in the world the U.S. national debt exceeds the GDP of the country and Europe is fighting for its existence , there is a feeling that a favorable environment for business has not yet arrived. And then there’s turn our attention to gold as an alternative means of investment.
Most experts agree that one of the main reasons for the increase in gold prices are problems in the world economy , and no one can say exactly how long they will last .
The market continues to “bullish” trend in gold , which began ten years ago . History shows that commodity prices have cycles in 16-17 years, which may mean that the “bullish” on gold market may last another 4-5 years.
When it is not necessary to forget that during the uptrend correction within 30% are normal , and no need to panic about this. History has confirmed this many times .
Investors should be aware that the last stage of the ” bull ” market is the most profitable , but also the most volatile . Therefore, we need to periodically use a correction to capitalize and build on its position on the gold prices fall .