January 17, 2020 (Investorideas.com Newswire) Gold investment has made a flying start to the year, and has already been hitting record numbers. This growth follows stuttering periods in 2019, and sets up for a fascinating year ahead. Gold is now being purchased outside the usual banking system and is being stored as a means of investment. Percentages have shown this grew by nearly 1% based on weight, in December alone.
This further increase in the early period of 2020 has been exaggerated as a result of the continued political issues between the US and Iran. This feud has had a rippling effect in the world stock markets, and has seen the value of gold surge as market sentiment shifts towards beneficial purchasing conditions. That looks set to continue moving forward, with prices in gold increasing as the demand for this commodity follows suit. Interest rates are also continuing to drop, which is resulting in savers looking for more efficient ways of investing, with gold continuing to be a good investment choice. It's unique properties and excellent market conditions at present are adding to the demand further still - two core price determinants, alongside inflation levels and fear or wariness.
Physical gold investment has also been rising and is proving popular with those looking to store this themselves. This is always an attractive option for those looking to keep their wealth out of banks and under their own control. Last year also saw a vast growth when it comes to first time investors in gold and further gives an indication of the rise and demand for gold, with it up by over 25% from the same period of 2018. Statistics also showed that many of these investors were based in Europe, as they remain on the rise with continued growth in gold investment. This meant that Europe now accounted for a little over 43% of all new investors in gold worldwide, which is a surprising statistic.
The trading patterns of gold also ended 2019 with the third highest it has ever been, which shows that the rise is worldwide. This on top of the new records set in Europe for both the pound sterling and euro.
The demand for gold rises, with much more buyers than people selling at present, which is further leading to the rise in prices. However, statistics have also shown a slight decline in recent months when it comes to private gold investment. This recently showing its lowest figures since back in August, which is surprising considering the vast overall rise over recent months.
The Gold investor index further back up the notion of the highest performance of gold at present, with December hitting their highest reading since back in 2012. Also, that this was the longest time it had been performing over a figure above 55 since back in the early period of 2011. This gives a clear indication of just how well gold is doing as a means of investment at present.
There are many different ways that someone can look to invest in gold and over time more and more options have become available. This in comparison to the past with only physical gold as the option. The different investment options for gold now include the likes of Gold jewellery, Gold mutual funds, Gold ETFs, Gold companies, Gold futures, Gold coins and Gold bullion. The latter being in the forms of bars or ignots, that are over 99.5% pure.
It is not only gold that is flying high but also silver. Statistics have shown this is also at record numbers when it comes to its value at present. It is currently over 25% up from the opening period of 2019 and this is expected to continue to grow moving into 2020. The stark comparison however is much of the activity has been on people selling silver, with statistics showing this has risen by a little over 25%.
Gold has always be a popular means of investment even dating back to its history in 3000 B.C. This has remained the same moving through to modern times. It is seen as a safe haven by many, with continued issues arising both economically and politically. Gold stocks are now also much more appealing to growth investors in comparison to income investors. Growth investors using these in order to rise their capital.
There is always going to be both advantages and disadvantages when investing and whatever it is will include risk. Whether this be by holding physical gold or by investing in shares for a gold mining company for example. Overall, if you look over time, gold has been a very safe bet against inflation and has rarely dropped drastically. This is why it remains as popular as ever and this is only set to continue moving through in to both 2020 and future years.
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