GOLD

The outlook created by the fundamental analysis of the gold market remains strong with the growing uncertainty in the world economy and rapidly expanding money supply. As governments try to cope with financial turbulence, they print more and more fiat money (money that is not backed with material assets). This fuels inflation that eats away government bonds yields. If the yields themselves are lower than the inflation, then you actually lose purchasing power by holding these bonds. In such a situation, investors switch to assets they believe will allow them to preserve their wealth. Gold is precisely one of such assets. Whenever you buy gold, the first rule of thumb is dollar cost averaging — putting a fixed amount of money towards gold every month regardless of the price. For the average investor, this strategy spreads risk out over time and lessens the downside. Gold is protection, insurance against inflation, currency debasement, and global uncertainty. That said, there are many ways that an investor can lose money with gold. With fears of more volatility in stock markets ahead, investors could do well holding gold, which is still the reliable safe haven asset, said Phil Streible, senior market analyst at RJO Futures. With the demand for gold growing both thanks to the demand for jewelry and thanks to the free exchange of information over the Internet, there is no technical possibility to satisfy the demand with both the existing and the anticipated gold supply. All of this suggests that gold is on its way up for the long term.

Gold is showing a divergence with the dollar and stocks, indicating upside potential for the yellow metal in 2019, said Mike McGlone, senior commodity strategist at Bloomberg Intelligence. “A lot of the drivers are turning positive. The volatility of the stock markets is turning up, from the lowest ever…and the dollar has had a substantially strong year. The trade-weighted dollar is the best performing major asset class on the planet this year. It’s up 8% this year, yet gold is trickling, it’s up/down 6%. To me, I see a sign of divergent strength,” McGlone told Kitco News Gold To Test $1,350 In 2019; Risks Are To Upside “I think we’ve tested the downside a good deal in 2018, my guess is that what we’ll do is test the overhead resistance during the course of 2019. I’m seeing prices at or above $1,350 level sometime during 2019. I think the risks are all to the upside right now for gold,” Milling Stanley told Kitco News. Milling-Stanley noted that at these levels, there are consumers in international markets who view gold as very attractively priced. Forecasting where the gold price will head over the coming 12 months.

Investors looking to enjoy the touch, feel and security of owning gold may wish to buy gold bars instead of intangible investments such as gold exchange-traded funds (ETFs). The first step to making a gold investment decision is to look closely and compare with other similar investments. A monthly profit of 3 to 4 percent can give you enough motivation to invest. Maybe you also know that a good deal can happen with a good purchase. The contract with Afroadvisor will give you the opportunity to make a good purchase from the gold mines in the Congo, with the removal of intermediaries. The Gold-Buying Process: Your investment can range from minimum order to tonnage. Buying physical gold bars is a fairly simple process. After negotiating with the experts in Afroadvisor and full knowledge of the work process, we sign an agreement which according to international trade law, all aspects of the law are considered and you can confidently take action on buying and receiving a purchase invoice. With AfroAdvisor team you can pre buy your gold bullion (24 carat) at a price below the global rate. The minimum order is five kilogram, the price per kilogram of gold is between 3% and 4% lower than the global rate (LME) and delivery time is between 25 to 30 working days. Payment method based on purchase amount can be Cash or LC. Now it’s time to

We live in a time of heightened geopolitical risk, record global debt and negative real rates. In periods of economic and political turmoil, investors have been rewarded with a flight to safety to physical gold. Investment grade gold bars are the most secure method of gold investment with no counter party risk. Historically physical gold has served as a repository of wealth maintaining its value in terms of real purchasing power. Gold serves as a portfolio diversifier because it tends to have low correlations to most other asset classes. It preserves wealth; Gold is typically considered a hedge against inflation, but it also acts as a currency hedge, in particular against the dollar with which gold correlates negatively. Gold is also highly liquid, sale proceeds will be returned the same day. Buying physical gold is the ultimate insurance against economic uncertainty and instability.

In order to fully understand the purpose of gold, one must look back at the start of the gold market. While gold’s history began in 3000 B.C, when the ancient Egyptians started forming jewelry, it wasn’t until 560 B.C. that gold started to act as a currency. At that time, merchants wanted to create a standardized and easily transferable form of money that would simplify trade. Because gold jewelry was already widely accepted and recognized throughout various corners of the earth, the creation of a gold coin stamped with a seal seemed to be the answer. Following the advent of gold as money, gold’s importance continued to grow. History has examples of gold’s influence in various empires, like the Greek and Roman empires. Great Britain developed its own metals-based currency in 1066. The British pound (symbolizing a pound of sterling silver), shillings and pence were all based on the amount of gold (or silver) that it represented. Eventually, gold symbolized wealth throughout Europe, Asia, Africa and the Americas. The United States government continued on with this gold tradition by establishing a bimetallic standard in 1792. The bimetallic standard simply stated that every monetary unit in the United States had to be backed by either gold or silver. For example, one U.S. dollar was the equivalent of 24.75 grains of gold. In other words, the coins that were used as money simply represented the gold (or silver) that was presently deposited at the bank. But this gold standard did not last forever. During the 1900s, there were several key events that eventually led to the transition of gold out of the monetary system. In 1913, the Federal Reserve was created and started issuing promissory notes (the present day version of our paper money) that guaranteed the notes could be redeemed in gold on demand. The Gold Reserve Act of 1934 gave the U.S. government title to all the gold coins in circulation and put an end to the minting of any new gold coins. In short, this act began establishing the idea that gold or gold coins were no longer necessary in serving as money. The United States abandoned the gold standard in 1971 when the U.S. currency ceased to be backed by gold.

In order to fully understand the purpose of gold, one must look back at the start of the gold market. While gold’s history began in 3000 B.C, when the ancient Egyptians started forming jewelry, it wasn’t until 560 B.C. that gold started to act as a currency. At that time, merchants wanted to create a standardized and easily transferable form of money that would simplify trade. Because gold jewelry was already widely accepted and recognized throughout various corners of the earth, the creation of a gold coin stamped with a seal seemed to be the answer. Following the advent of gold as money, gold’s importance continued to grow. History has examples of gold’s influence in various empires, like the Greek and Roman empires. Great Britain developed its own metals-based currency in 1066. The British pound (symbolizing a pound of sterling silver), shillings and pence were all based on the amount of gold (or silver) that it represented. Eventually, gold symbolized wealth throughout Europe, Asia, Africa and the Americas. The United States government continued on with this gold tradition by establishing a bimetallic standard in 1792. The bimetallic standard simply stated that every monetary unit in the United States had to be backed by either gold or silver. For example, one U.S. dollar was the equivalent of 24.75 grains of gold. In other words, the coins that were used as money simply represented the gold (or silver) that was presently deposited at the bank. But this gold standard did not last forever. During the 1900s, there were several key events that eventually led to the transition of gold out of the monetary system. In 1913, the Federal Reserve was created and started issuing promissory notes (the present day version of our paper money) that guaranteed the notes could be redeemed in gold on demand. The Gold Reserve Act of 1934 gave the U.S. government title to all the gold coins in circulation and put an end to the minting of any new gold coins. In short, this act began establishing the idea that gold or gold coins were no longer necessary in serving as money. The United States abandoned the gold standard in 1971 when the U.S. currency ceased to be backed by gold.

Given the fact that gold no longer backs the U.S. dollar (or other worldwide currencies for that matter) why is it still important today? The simple answer is that while gold is no longer in the forefront of everyday transactions, it is still important in the global economy. To validate this point, one need only to look as far as the reserve balance sheets of central banks and other financial organizations, such as the International Monetary Fund. Presently, these organizations are responsible for holding approximately one-fifth of the world’s supply of above-ground gold. In addition, several central banks have focused their efforts on adding to their present gold reserves.

The reasons for gold’s importance in the modern economy centers on the fact that it has successfully preserved wealth throughout thousands of generations. The same, however, cannot be said about paper-denominated currencies.