Eric Sepanek
SBC Founder
Eric Sepanek is the founder of Scottsdale Bullion & Coin, established in 2011. With extensive experience in the precious metals industry, he is dedicated to educating Americans on the wealth preservation power of gold and silver.
Gold prices continue to move confidently to the upside, driven by growing safe-haven demand and economic uncertainty. UBS Global Research – the research arm of the world’s largest private bank – raised its precious metals outlook to “overweight” which suggests higher evaluations in the future. Analysts highlighted strong investor appetites and worsening market and geopolitical conditions.
The Numbers
- Central bank gold demand charted new highs in H1 of 2024 at 483 tons.
- Gold prices remain near the all-time high of $2,483.
- 45% of young inventors express interest in owning gold.
Why Investors Should Care
Currently, there’s a global transition from traditional investments to safe-haven assets such as precious metals as investors seek stability and protection in a climate of increasing instability. Inflationary pressure, currency devaluation, escalating conflicts, heated elections, and a slew of other burdens weigh heavily on the financial health of Americans. Making the right moves today can mean a more financially sound tomorrow.
Market Impact
Following market-wide euphoria, investors are beginning to withdraw from conventional assets. Earlier this month, the stock market suffered its largest blow in years, shedding 6% in seconds of opening. This sharp and instant stock market dip signals rampant investor concern. Safe-haven assets, especially precious metals, benefit from this stock market exodus. Gold prices have been on a tear, breaking several records along the way.
Future Outlook
UBS’ increased weighting for precious metals suggests growing demand and higher prices down the line. This prediction is made in good company as numerous institutions and experts make similar forecasts. The World Gold Council suggests central bank gold buying will carry on, following a record first half of 2024. Many experts have raised their gold price predictions after the yellow metal’s surge to new highs.
Expert Insights
Analysts at UBS view commodities as undervalued across the board, arguing that higher prices are incoming as demand heats up.
Their “overweight” rating simply means precious metals are expected to perform better than the overall market in the future.
TD Securities joins the upbeat outlook. “Every way you look at it, gold now screens as a well-populated trade. The Street is unanimously bullish.”
Jim Wycoff, Kitco Metal’s senior analyst, highlights the positive price performance of physical metals. “What we’re seeing…in the gold and silver markets is some price support coming from bullish charts.”
What’s Driving the News?
The renewed interest in safe-haven assets such as physical gold is driven by a multitude of factors. Misguided Federal Reserve policies, political upheaval, geopolitical unrest, inflationary pressures, and heated elections are all pushing investor uncertainty to new highs. More and more people are simply unwilling to put their hard-earned dollars at risk.
Actionable Takeaways
Diversify Wisely
A well-diversified portfolio can protect your savings accounts and retirement accounts from devaluation in the face of inflationary risks.
Look to Physical Gold
Physical gold offers plenty of advantages over its paper counterparts including inherent value, physical ownership, and privacy protection.
Pay Attention
Keep an eye on economic and geopolitical developments. These factors heavily influence gold demand and can give you a head start.
Consult with an Advisor
At Scottsdale Bullion & Coin, we’re prepared to help you prepare for these uncertain times. Reach out via our toll-free number at 1-888-812-9892 or use our live chat to get personalized advice on how to protect your wealth with gold.