How High Will Gold Go?
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How High Will Gold Go?
During the Great Recession of 2008-2014 the UK economy saw Gold hit a high of £1163.49 on the 9th September 2011 today as it has hit a high of £1273.14 we ask the question how high will gold go?
During difficult times gold and silver bullion are a safe haven to protect investments and in February 2020 this is most apparent due to the Coronavirus C-ovid19 which has hit the global economy since December 2019. With no end in sight to the spread of the virus and many places going into quarantine the likelihood of trade struggling and the fear of countries going into recession means gold and silver bullion are favoured investments.
The airline industry has announced it is expected to lose up to $30billion as people take fewer flights. The Asian airline are expected to be the worst hit.
In the final quarter of 2019 Japan announced it’s economy had shrunk by 1.6% with a risk of recession. These were based on data produced up to 31st December 2019 before the threat of the coronavirus had been announced. The effect on the Japanese Market will no doubt push the country close to if not into recession for the first quarter of 2020.
China is in lock down with many manufacturers and resellers struggling to fill orders as their materials and stock are stuck in Chinese ports. These industries will be greatly affected until the quarantines are removed. Oxford Economics has estimated the cost to the World Economy will be around £850 million while the IMF (International Monetary Fund) have described the world economy as fragile.
Ronald-Peter Stoeferle of Incrementum AG researched global gold trends and comparisons to the 1970’s gold bull market. In discussions with Mike Maloney of GoldSilver.com they talked about the similarities of the 1970’s bull market and the current bull market and when overlaid one on top of the other they are following a similar trend. The 1970’s bull market suddenly accelerated in value from 1975 – 1978 which indicates the current cycle could continue upward for the foreseeable future especially with the global economy being so fragile.
How high will gold go? Your guess is as good as mine but it is feasible it will go up to or beyond £2000 an ounce over the coming months especially while the coronavirus has such an impact on global economies. It will be interesting to watch.
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