After losing 20% of its value in September, the price of gold per ounce is once again on the rise. The analyst forecast for the yellow metal is positive, and many experts believe that gold prices will hit new records in the coming months.
Strategic investors came out of the woodwork once gold prices dropped in September. Since many investors believe that the value of gold per ounce has a solid future ahead, September’s lowered prices for the precious metal provided a prime opportunity for buying in.
Analyst Edel Tully said that September’s gold prices attracted “smart real money-type buyers. If these quality buyers multiply, we believe gold would have a base on which to consolidate, although this morning's actions suggests that is still some time away." There have been a growing number of investors who are taking long-term positions on gold as a result.
The value of gold per ounce has just hit a six-week high on November 3, which has given gold investors confidence that the metal will make a recovery sooner than later. The current price of gold is above $1,750 and climbing. Many analysts believe the upward trajectory for gold prices has just begun.
Jonathon Corpina, senior managing partner at New York’s Meridian Equity Partners, believes that people will continue to purchase gold investments as long as other forms of investment are unstable. Corpina said, “You need to have a balanced portfolio. [Gold is] one of the safest bets out there. The value has always been there. On Main Street, people see its value rising higher. They're no longer sure that cash is their safest bet.”
Countries with growing economies such as India and China are also supporting gold prices. It has become a trend in recent years for the central banks of these countries to purchase large quantities of precious metals in order to secure their country’s wealth. The government of China has also made considerable effort in encouraging its citizens to buy gold, whether in the form of jewelry, bullion bars or coins, or indirect investments in gold certificates, derivates, or exchange-traded funds.
Since gold is now viewed as one of the very best diversification investments, most analysts believe that the latest correction in the gold price is temporary. As concerns over inflation and other global political and economic factors persist, so will investor interest in the yellow metal as a financial safety net.