“If we look at a fairly long period of time, then we can see some correlation between the rise in the price of gold and the total US debt. However, in 2011 this correlation stopped working: gold was declining, and debts were growing, but the connection between them still remained, "the analyst said.
Pension funds, which have virtually no gold ownership, are another important factor. Barysheff believes many of them were underfunded even before the outbreak. “If pension funds invest at least 1% of their capital in gold, which is quite likely, then the value of the yellow precious metal could rise to $ 10,000 per ounce, as gold production at the deposits declines,” the review says. The fact is that there is a limited amount of investment gold available. If they start buying it in large quantities, it will become noticeable, which means the price will rise.
“People are constantly talking about the need to diversify their investments and have a balanced investment portfolio. But at the same time, they themselves do not invest either in raw materials or in real estate, not to mention precious metals. In this case, there is no diversification, ”the expert says. In his opinion, you need to have from 10% to 20% of investments in gold, although each investor himself determines this indicator based on his goals and capabilities.
Seasonal factors will help the gold market. Investors will be able to count on the fall price increases. In the event of the beginning of a strong inflationary period, the cost of silver can bring a higher yield than the yellow precious metal. Investors should pay attention to this undervalued precious metal. Beginners are better off buying classic gold and silver coins. In the long term, most assets will lose their value in relation to precious metals.