It’s very easy to dump on gold recently. With the price of oil depressed and the dollar surging along with the Dow Jones Industrial Average, it’s very tempting to think that the best days of gold are behind it.
Well, it’s never a good idea to bet against gold. You have to remember that every party will end sooner or later. Currently, we are living in a bubble economy and there is a party going on in Wall Street. Eventually, the party will end and people will wake up with a hangover from all the cheap liquidity flooding the markets. It would be time to pay the piper. It ‘s never a popular thing to say, but the reality is that the market has gotten way ahead of itself.
Still, gold has been beaten up quite a bit lately. In fact, regardless of the fairly recent rally it experienced, it is still down considerably. If you have been on the fence as to gold investments, now might be a good time to make your move.
First, if the market crashes, gold will surge. Second, if there is some sort of economic panic, gold is sure to appreciate. Third, as far as jewelry and industrial demand are concerned, the future looks bright for gold. You have to understand that in Asia, gold demand is set to double in the coming years. By the year 2030, according to the Australia and New Zealand Banking Group, demand in Asia is going to jump close to 5,000 metric tons a year.
Of course, this demand has many different forms. At one level, it’s an investment. At another level, it’s for jewelry. Regardless of the particular form that the demand will take, the demand will be there.
It’s a good idea to get into gold while it is temporarily depressed. You don’t want to get into gold by buying in at the top. If the financial house of cards that’s currently holding up the global economy implodes due to an external shock, you can be sure that people will run for the exits. Normally, when they run for the exits, they either head for very secure bonds, or they scoop up gold.