Gold Price Could Soar in 2016
This may sound bold, but it’s worth saying: if you are not watching gold bullion prices closely, you will kick yourself later. The gold price could reward investors big-time in 2016 and ahead.
Let me explain…
There’s one thing almost everyone agrees on and that’s the fact that gold bullion prices move higher in times of uncertainty. Look back at history and you will see this phenomena occur over and over again.
With this said, as it stands, we have an abundance of uncertainty across the globe. Since the beginning of 2016, gold prices have jumped higher due to this. We are currently looking at three main factors that have potential to add more to the uncertainty, and send gold bullion soaring even higher.
The first factor is the European Central Bank (ECB).
The central bank is printing money to bring economic growth to the eurozone. Sadly, it’s failing miserably. The common-currency region continues to struggle. What’s interesting is that there’s a significant amount of noise that suggests the ECB will increase its pace of money printing soon.
If the ECB goes ahead with this decision of printing more, it will further devalue the euro—which has dropped more than 20% in value compared to the U.S. dollar since 2014 alone.
Remember: gold is one of the best hedges against currency devaluation. Eurozone investors could rush to buy more.
The second factor to send gold prices higher is China.
Don’t be fooled into believing that everything is fine in the second-biggest economy in the world; it’s not. In 2015, the Chinese economy grew at its slowest pace in decades. And growth estimates going forward are outright dismal.
Know that the Chinese economy could send wa