Prediction of Gold Price in 2015
Why Some Think Gold Prices Will Increase?
So, what is the rationale behind the claims that gold prices can go nowhere but up? The first reasoning is that gold has reached as low as it could, which means it is about to enter a new stage characterized by positive growth. In 2011, gold reached a price of $1,900. Gold prices have since dropped by more than a third to trade at about $1,200. For those who invested in gold during its 2011 peak price, the losses incurred to date have been,in some cases, more significant than the three-year slump in prices.
Secondly, it is believed that plans by the ECB (European Central Bank) to increase the supply of the Euro to boost growth in the region will boost equity markets in the Euro. This will create a period of financial uncertainly that will result in people running to ‘safe haven’ investments such as gold and other hard assets, especially with regard to their retirement accounts. Consequently, increased demand for gold will result in upward pressure on the price of this popular metal.
However, those who are looking to get into gold IRA investing for the first time should consider that at times, gold and other equity markets tend to have an inverse relationship. This means that a portfolio should have some balance between gold and other equities, because chances are that when gold is performing badly, world equity markets are doing well and vice versa.
Why Others Think It Will Continue To Fall
Less optimistic experts believe that the worst of gold price declines are yet to come. Buying gold at this point in time, as far as these experts are concerned, would literally be like trying to catch a falling knife, and that is fraught with many unnecessary risks. There is more to this grim outlook: the argument that inflation resulting from increased money supply in the Euro will directly translate to an increased demand in gold and hence an increase in gold prices might not hold.
Inflation is now a dated concept, and the world no longer responds to it in the same way it did in the past. In fact, the global market remains uncertain at the moment, and most major financial interventions, which are likely to occur towards the end of 2015 might actually result in deflation, and hence a possible decline in demand for gold.
Additionally, the US economy is largely expected to thrive in 2015, which means that gold will continue to experience downward price pressure from the US economy over the year as other stocks offer more attractive returns. This undoubtedly adds to the negative outlook for gold over 2015.
In fact, the state of the US economy is considered the reason behind the steady fall in gold prices over the one and a half years. Considering that the US economy is more than likely to remain in this high-growth state, it is therefore reasonable that this precious metal will continue to perform poorly over 2015.
Should You Invest In Gold?
There is no simple answer to this question. Some experts believe that gold price is about to start going up. They could be right, although evidence to the contrary is not to be ignored. First, the claim that gold price will rise is based on major financial events that are expected to occur during the year, namely, increased Euro supply. But then there is also evidence that major financial situations during the year could actually push gold prices further down,in particular, the thriving US economy.
The trend in gold prices does not currently tell of any upward trend. So, basically, there is no certain way to tell whether it is a good time to try out gold IRA investing. Social Security no longer offers adequate financial protection after retirement, which is why precious metals IRA investment should be given careful thought, since it could hold the key to a comfortable retirement.
The first thing to consider is the period in which you intend to invest in a certain asset. For instance, over the short-term, the future of gold price is quite uncertain. There is no clear indication that an uptrend has set in, and there is no evidence that the price fall is over. However, even if you are eager to do a gold IRA rollover, make sure that some of your investment remains in other equities as a protection against further declines in gold prices. Luckily, prices of US equities over 2015 remain fairly positive, which means they will offer a fairly good protection if your precious metal IRA does not go well. An even better scenario would be enjoying an increase in gold prices over the year if the prediction that gold prices will increase holds true.
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