3 Surefire Reasons Gold's Price Will Climb!

Gold has been an incredibly interesting commodity to watch throughout the beginning of the year 2016. However, it seems as though we've only seen the tip of the iceburg. In fact, there are several reasons that gold is likely to continue climbing through the rest of the year, if not longer. Today, we'll talk about 3 surefire reasons why the price of gold is likely to climb in value. So, let's get right to it...

Reason #1: Brexit

The number one reason that we're seeing big gains in the price of gold at the moment, and why gains will continue is the Brexit. If you've been watching financial markets recently, chances are that you've heard quite a bit of the term Brexit, and for good reason. Not only is it a big story, it has massive implications for the global economy.

Late last week, the British people voted with regard to whether or not they want to remain as members of the EU. The votes are in, and the people have voted to leave the EU. This means that not only does the UK have to renegotiate several global trade agreements, Europe will no longer have the support of the UK. As a result, we're likely to see big financial struggles in both regions, which will eventually bleed into the rest of the world.

Because gold is considered to be a safe-haven investment, investors tend to look to the commodity to keep their money safe in times like these. As a result, demand for gold climbs, and the price follows.

Reason #2: Institutional Demand

Another big key here is institutional demand. Over the past several years, we've seen downtrends in institutional demand for gold. During that time, the market was doing incredibly well, and there was no reason for institutions to look for a safe haven.

However, things have changed in a big way. So far this year, institutional demand for the precious metal have skyrocketed. This shows that some of the world's largest financial institutions are expecting to see gains in the price of gold. When big money makes a decision like this, it shouldn't be taken lightly. These guys have done their research, and they're expecting for the price of gold to climb!

Reason #3: Safe Haven's Aren't So Safe Anymore

Another big reason that I'm expecting to see gains in the price of gold is that safe havens aren't quite as safe as they once were. In the past, there were several safe-haven investments. The Swiss Franc held safe-haven status along with bonds. However, this is changing in a big way, leaving gold and silver as two of the few options that are available.

You see, when Switzerland started to see economic struggles last year, investors stopped looking at the Swiss Franc as a way to keep their money safe. On top of that, bonds simply aren't yielding the returns they used to. With governments buying bonds as a way to stimulate economic growth, the returns on these investments are diminishing in a big way.

Finally, low interest rates are making it so that traditional safe havens simply aren't worth the time. After all, many safe havens are dictated by interest rates. When interest rates are low, returns shrink.

So, gold just so happens to be the best bet as a safe-haven investment at the moment. As a result, I'm expecting to see further gains in safe-haven demand for the precious metal.

[Image Courtesy of Wikimedia]