With 2019 drawing to a close after what has been a great year for gold, the World Gold Council has revealed what it considers to be the most pertinent trends for gold investors for the months to come. This insight is a great way to round out 2019 and set you up for buying gold as we go into the New Year.
Investment demand – one of the key trends for 2020 will come as no surprise if you’re a regular reader of our mid-week and Friday Gold Bullion Bulletins. The Council says that it expects to see the widespread geopolitical uncertainty to continue into the New Year. Couple this with continuing low interest rates and it is expected that gold will continue to benefit from a strong level of investor demand.
Gold will continue to be a portfolio star in a volatile marketplace – The World Gold Council notes that it’s been a fairly volatile year for the markets with stocks reaching new highs at some points in the year but these gains were set to a backdrop of large losses and dips too, giving investors something of a roller coaster ride. It should come as no surprise to learn that gold has benefited here as it continues to fulfil its role as a safe haven for investors. The Council reports the precious metal had gained almost 15% at the end of November, fuelled by investors keen to add some stability and safety to their portfolios in a volatile market.
All the signs point to this continuing to be the case as we head into the early months of 2020 so we can realistically expect to see gold continuing to shine brightly as a source of stability and safe-haven investment.
High risk on the horizon – another reason the World Gold Council is predicting that 2020 will be a great year for gold is the prospect of increased turmoil on the global stage. It says far from current worries being resolved, newer ones will be added to the pile to give even greater cause for concern. It notes, “As we look ahead to 2020 we believe investors will face an increasing set of geopolitical concerns, while many pre-existing ones will likely be pushed back rather than being resolved. In addition, the very low level of interest rates worldwide will likely keep stock prices high and valuations at extreme levels. Within this context, we believe there are clear reasons for higher levels of safe-haven assets like gold.”