Still spoiled by the gold year 2019, precious metal specialists and analysts forecast a rising gold price for 2020 as well. After gold hit a six-year high of over $ 1,500 a troy ounce in 2019 (the largest annual growth since 2010), the appeal of the yellow precious metal remains high. We talked to a few experts about it.
Gold is more successful than ever in Germany
According to a study by the state-recognized scientific “Steinbeis University” in Berlin, German private investors (three quarters of all German citizens) own 8,918 tons of gold. Almost 4,000 tons of jewelry and 4,925 tons in bars and coins. That is an increase of 246 tons within four years.
The current gold price is traded at various trading venues in US dollars per troy ounce (abbreviation: oz; 31.103 grams). It is a difficult process to understand, even if it develops easily according to supply and demand, and is complemented by short-term speculation, long-term expectations and global economic development.
But gold would not be gold if there was not always a certain unpredictability or inconsistency (volatility) in its pricing. This answers the question of when the time is right to exchange money for gold. Those who want to protect their assets should invest in gold. Regardless of the current, often moody gold price.
Gold remains a driving force in provisions and capital investments
The development of the gold price for 2020 is pointing upwards. According to a survey of 40 analysts and precious metal experts, the expected average price for 2020 is even seen at USD 1,537 / troy ounce. In 2019, the average gold price was $ 1,375 / troy ounce. Kilian West from Berlin-based precious metal trader valvero GmbH: “Anyone who invested in gold in 2019 can benefit from the then low, if already very high, gold price. The prospect of 2020 suggests that gold will remain an inflation-proof currency this year as well. An investment with a lot of potential.”
West believes that many indicators that got the gold price going in 2019 continue to stand for continuously positive growth with a calculable setback potential. In addition to valvero’s analysts, other experts point to the ongoing low interest rate phase, the consequences of the final Brexit scenario and the upcoming settlement in the US-China trade dispute. They believe that the gold price will fluctuate between USD 1,550 and USD 1,515 in the medium term. This narrow trading range could even be broken before the US election in November, causing gold to skyrocket to $ 1,600 to $ 1,650 per troy ounce.
Gold is a matter of trust
Even if the escalation between the United States and Iran takes a breather that you don’t know how long it will take and where the conflict is headed, anxious investors are already pulling out of the safe haven of gold and switching to stocks and other forms of investment. This snapshot undoubtedly gives the gold price troubled weeks and puts it under massive pressure. The overbought situation at the beginning of the year is slowly being put into perspective. These price corrections on certain support and resistance lines give a healthy movement to the overall gold price development. All other factors are volatile and cannot be predicted by analysts or experts. The gold price last Thursday was $ 1,557.20.
Born 1981 in Strasbourg, is a freelance journalist for various online media throughout Europe, focusing on finance, real estate and politics. He gathered his professional expertise as a consultant for global players and medium-sized companies. Fournier studied economics and german in Paris and Dresden. He currently lives in Saarland and has been a member of the Euro Leaders team since the beginning of 2019.