Gold has certainly seen better days. Deflationary pressures as well as a bear market stretching back to 2011 has been enough for some folks to consider it dead altogether.
The precious metal’s prices fell by 44% over the 52 months from September of 2011 to January 7th of 2016.
The folks over at seeitmarket.com want your attention however, because they see multiple reasons for you to consider gold in 2016:
- Sentiment is very negative and almost everyone is underweight
- Supply & demand fundamentals are positive
- Chinese demand continues to rise
- It is a means to portfolio diversification
- The main risks to prices are overblown
- In the next sections, we will examine the bull case for gold and the risks facing it. In conclusion, we will try to answer the following question: Is this the beginning of a new golden age?
If you’re the type to pad your portfolio with gold or precious metals, you might want to consider reading the full article here which goes into great depth analyzing supply & demand, China’s current market, risks, and more. Check it out here.
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