Is gold about to reach $ 2,000 an ounce, and who are the experts who think this is the right direction? Are you already familiar with the investment channel that manages to maintain stability even (and perhaps especially) in the days when the financial system may go into a spin? Gold, especially now! The precious metal marks two successful decades and investors' faces are looking forward.

When interest rates in Israel and around the world strive for zero and sometimes even negative, and the central banks in the world pour money into the markets and create infinite liquidity, gold is once again rising as the appropriate investment channel. In the days of trade wars and hand-bending between the most powerful countries in the world, and in a time of geopolitical uncertainty, many analysts and investment experts suggest stepping on the golden path. Experts also promote investment in the precious metal and making sure that at least a portion of the investment portfolio is based on the golden metal.

Why? Well, investing in gold has always been, and still is, a protection and security against shocks. The fall of the stock market, inflation, geopolitical crises, horizontal economic moves (such as the Brexit) and spirits of war - in any of such events, gold is a recognized refuge that has proven itself throughout history as the most stable and secure investment.

 

Investing in gold for future yields

First insights about capital markets and what is already considered a common assumption, are that periods of uncertainty and crisis, which are causing stock market declines, lead investors to seek safe havens in which gold is a "key player". The metal, which rests on a history of over 5,000 years, rightly enjoys an image of defensive investment. For example, in the crisis-ridden decade of the beginning of the millennium (2000-2010), gold recorded an increase of about 525%, which brought it to a peak of about $ 1,800 per ounce.

 

Change in value of an ounce of gold

Change in value of an ounce of gold, in dollars, between the years 2000-2020.

 

 

Investing in gold versus investing in currencies

In the past there was a claim that the holding of physical gold is not due to lack of alternative economic interest paid for the maintenance of AAA government bonds or bank deposits. Today the situation is different - the public looking for investment channels has to deal with negative interest rates and zero returns, and therefore finds holding gold as an attractive option.

 

More than $ 2,000 an ounce?

Investment in gold is also backed by encouraging forecasts regarding a rise in the price of gold metal. At the world-renowned LBMA Gold Conference, held in October 2019 in the presence of more than 700 experts, a weighting was conducted to estimate the expected price of gold. Experts estimated that in about a year gold will cross the $ 1,600 value, but shortly after (less than six months later) in February 2020, gold crossed this limit. Beyond this estimate, at the end of 2019 the expert analysts of Citi Bank issued an announcement to investors that in the near term of 2-4 years we may see a price tag of $ 2,000 per ounce. The bottom line is certainly clear.

Dove of Peace Bullion, American Eagle Bullion, Australian Kangaroo Bullion

Pictured, from left to right: Australian Kangaroo Bullion, American Eagle Bullion, Dove of Peace Bullion.

 

How should I start investing in gold?

There are many ways to invest in gold. Some are made from the financial system, such as buying ETF’s or investing in shares of companies in the gold field, however the most stable and secure way has always been to hold physical gold. This investment path is detached from the financial system and allows the investor to enjoy one of the best guarantees of gold - minimum dependence on external factors.

The recommended way to purchase physical gold for investment is by buying gold bullion coin, bars and rounds. Israel Coins and Metals Corp., which was established as a government corporation in 1958 by then Prime Minister David Ben-Gurion, is the only manufacturer in Israel of The Holy Land Mint gold products for investment. The company operates to the highest standards in the world, meets the standards of the International Gold Association, the LBMA, and enables the purchase of legal tender bullion coins in addition to pure gold bars and rounds on the company's website and branches nationwide, and from authorized distributors worldwide.

 

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The information contained in this website should not be construed as investment advice or as a substitute for investment advice suited to your own individual financial needs for purchase or investment, investment activities or transactions, or as recommendations or opinions as to the benefits of investing in gold or in any other specific products. The information contained in this website does not constitute an alternative for investment advice and you should not act upon it, before seeking advice adapted to your own personal situation and needs.