By Peter Kevorkian,
United Coins & Precious Metals
Gold prices have made a steady climb into a three-month high in London according to
MoneyNews,introducing what many experts believe could be the beginning of a bullish market for gold commodities. Prices climbed after speculation mounted over an attack against Syria, causing the demand for the precious metal to increase accordingly. Silver also rose to a four-month high.
This type of investing is referred to as “safe haven buying” -- an investment that is expected to retain its value or even increase its value in times of market turbulence.*
“We are seeing safe haven buying across the board,” said Bernard Sin, head of currency and metal trading at bullion refiner MKS (Switzerland) SA in Geneva according to reports. “Geopolitical uncertainty triggered this buying interest.”
Political apprehension contributed to gold rising by as much as 1.3 percent to $1,433.83 an ounce – the highest since May 14. If gold prices close at $1440.78, it would place the commodity at 20 percent above its 34-month low, introducing by all intents and purposes a bullish market for gold.
But events surrounding the uncertainty in Syria aren’t all that affects gold prices. Other factors can further spur a bullish market such as:
SLOWING ECONOMIC RECOVERY.With weak job numbers, investors may look to gold instead of other investments to strengthen portfolios. This, in turn, could further stimulate a bull market for gold.
THE FED.Many investors are turning to commodities like gold thanks in part to rising yields on bonds. If demand continues to rise, gold prices will soon follow.
HOUSING BUBBLE.Could we be in a new real estate bubble? Experts say it’s possible with its recently reborn demand. With uncertainty in the future of real estate, gold may be a more stable and reliable investment option which, if investors follow suit, could further propel its looming bullish market.
GOLD: BUY OR SELL NOW?
The question on everyone’s mind is what to do about gold – should you buy or sell? Conventional wisdom tells us that we ought to buy low, sell high. If a bullish market is in store for gold prices, then it can only up from here. With that in mind, consult with your financial advisor on the best move for your portfolio or give us a call at 1 (858) 412-6462 or online at
https://UnitedCPM.comto find out how gold can work toward the benefit of your financial portfolio.
*Definition according to