Invest In Gold To Make Money In Today's Investing Climate

Today's investing climate is rough. With global economic conditions tough at best, the stock market has been a volatile place. This is making choosing the right investments more and more difficult as increasing volatility adds to increasing complexity. Nonetheless, there is one place that you can look for nearly guaranteed gains. That place is gold. Whether you're buying physical or paper gold, chances are you're making money. The precious metal has gained around 25% this year, sending stocks like Barrick Gold soaring. Today, we'll talk about why gold is having such a strong year and why we can expect for the gains to continue.

What Causes Price Movement In Gold

In order to understand why gold has had such a strong year this year, it's important to understand what causes movement in the price of gold. Like most commodities, gold's price is largely dependent on the law of supply and demand. When supplies rise and fall, prices fall and rise respectively. Also, when demand rises and falls, prices rise and fall respectively.

However, gold is also a safe haven investment. As a result, we can expect to see large shifts in demand for the precious metal considering the investing climate. When market conditions are negative, the demand for gold climbs as investors purchase it to protect the value of their assets. This causes gold's price to climb. Adversely, when market conditions are positive, investors sell their gold to free funds for investing in other assets. This leads to declines in the value of the precious metal.

Why Gold Has Been Climbing In Value This Year

As mentioned above, this year has been an overwhelmingly positive one for gold, and for good reason. Market conditions have been incredibly uncertain. With heavy volatility in the market, investors are looking to gold to keep their money safe. So, demand for the commodity is climbing in a big way.

Why Gold's Price Is Only Going To Grow

At this stage in the game, it's hard to argue the fact that gold is a great investment at the moment. The reality is that global economic conditions are becoming even more concerning than they were earlier in the year.

Recently, the consumers of the UK voted that the UK should leave the EU. This is stirring up more volatility in the market. With the UK making the decision to exit the EU, economic in both regions are likely to take a major hit. Because these are 2 of the top 5 economies in the world, this means that the global economic outlook is becoming more and more uncertain. After all, due to global trade, most local economies are largely dependent on several other local economies.

The truth is that the world's economic outlook was already in question. Now, people are preparing for the worst. At the end of the day, the news of the Brexit is huge news. The implications of the action are likely to radiate around the world.

As the global economy adjusts to the tectonic-like economic shift, we are going to see big waves in the market. This will all happen while investors continue to push the demand for gold upward. As a result, gold will continue to climb in vlaue.

What Do You Think?

Where do you think gold's price is headed and why? Let us know your opinion in the comments below!

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