Precious Metals: 3 Biggest Reasons Why Investors Are Returning to Gold
In the past year, investors have increasingly returned to gold, leading some to dub this the return of the gold rush. But why are investors going back to gold, and what does this mean for your financial future? Keep reading to find out.
1. Gold Prices Have Gone Up in a Big Way
Even those who just began investing in gold this year have seen some powerful returns. In fact, by May of 2023, gold values had skyrocketed by 10% compared to last year, hitting $2,040 per ounce. The value of gold is likely to continue growing over time, meaning that would-be investors in precious metals still have an opportunity to make a potentially very big profit.
2. The Dollar Keeps Getting Weaker
While gold’s value has only been increasing, the American dollar just keeps weakening. In July of 2023, the dollar’s value hit a 15-month low. There are many reasons for this change, including various stressors within the banking sectors and the battle earlier this year over the debt ceiling. Compared to the dollar, more people are seeing gold as a safe investment.
3. Gold May Be Worth More Than Ever Next Year
The value gold has currently risen to is already impressive, but what is even more impressive is that it is on track to quite literally become more valuable than ever before. Previously, gold hit its peak value of $2,075 in August 2020, riding a wave of financial anxiety regarding the COVID-19 pandemic. Now, some analysts believe that gold may reach a value of $2,200 by March of 2024, and an increasing number of investors believe that heavily investing in gold right now may bring them some major returns in less than one year, making it a safer investment than the stock market.
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