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What is the gold outlook for 2019? Can a bullish Gold Trading Market last until then or what is the realistic outlook for gold buyers?
Within the last three years, we have seen a resurgence of gold and silver as investment options for traders. An ounce of gold was trading around $1,350 – $1,400 at the end of 2014. It appreciated to more than $1,744 by the end of first quarter in 2018. The metal is currently trading at just over $1,710 in the market.
We saw a similar trend for silver. At the end of 2015, the metal was trading close to $18 per ounce. We saw a bullish trend where it hit $26 during 2016 before settling down at its current value of $20 per ounce.
A large number of investors believe that precious metal prices will see an upturn and the bullish trend will continue in the long run.
If we review and compare current gold prices to just 20 years ago, we can see that the metal has increased in value by more than 800%. That is phenomenal growth in terms of investor return. No other business or investment can even come close to giving a return as high as precious metals.
What is even more interesting is that no major technologies have been developed that make use of gold in the last twenty years. There has been an increase in demand for jewellery but nothing so significant that would cause such an appreciation in value.
Future Bullish Market for Gold and Silver
Investors and analysts believe that the bullish trend will continue to increase the value of gold and silver in the coming decades due to the following factors.
Shift in Gold and Silver Demand Dynamics
A number of countries have been steadily buying gold in the market. China and a number of Mideast countries have shifted their reserves into gold due to a slump in the US economy and a weak dollar. Experts believe that we may see a resumption of this trend if US relations deteriorate with other countries under the Trump administration. This will obviously increase the value of gold in the markets.
New Technological Applications of Gold
A small amount of gold is also used in electronic and durable goods. If new technologies like the Internet of Things (IoT) or blockchain take hold, we are likely to see greater demand for electronic goods which will cause the bullish run for gold to continue.
Gold compounds also show promise in medical application and clinical testing and rising demand is likely to keep prices increasing.
Volatile Financial Markets
The biggest demand for precious metals like gold and silver comes from millions of small investors who are storing their life saving into metals. Since the financial meltdown of 2007-08, many investors are not willing to trust big banks and reluctant to keep a large amount of cash due to inflation.
This is the reason why we saw cryptocurrencies explode recently when a large number of small investors decided to exchange their savings into digital money. While the crypto bubble did not last for long, gold and silver are time-tested commodities that have been around for thousands of years.
These are the main reasons why gold and silver market predictions remain positive and we will see a continuing bullish trend in the future.