Philip Diehl, the current president of US Money Reserve recently voiced his opinions about the state of gold in a podcast. Diehl views gold as a great long-term investment that people can use as a hedge against political instability in the world. Over the past several years four major factors have affected the value of gold.
First and foremost the financial collapse of 2008 sent investors piling in to gold as they were looking for somewhere same to put their money. Around the same time gold ETFs were created which helped add liquidity to the gold market, and at the same time, contributed to a rise in gold sales.
The rise in the dollar has also led to a rise in demand for gold from other countries. In particular, China and India have accounted for 65% of recent gold purchases. The final factor that has influenced the recent gold market has been speculation taken by investors on US monetary policy.
However, these events have all come to pass. Going forward Diehl sees a few major events that will likely have a noticeable impact on gold prices. The growing middle class, but more importantly the growing middle class in BRIC countries, combined with increased political instability could lead to a major increase in gold.
Another big potential event that could drive the price down and thus fuel demand would be the eventual decline of the US dollar. Diehl believes it is only a matter of time until this occurs, because what comes up must eventually go back down. When this happens the sinking dollar will take the price of gold right back down with it which will lead to an excellent buying opportunity for investors.
However, serious investors should not be too concerned with these events. Gold should be held for the long-term, in order to act as insurance in the case of political instability.
Diehl suggests that those interested in learning more could speak to a US Money Reserve gold specialist in order to get expert, up-to-date information on the topic. US Money Reserve is the largest distributor of United States government issued gold, silver, and platinum coins. This means that the weight and purity of each coin is guaranteed by the biggest economy in the world. This gives customers peace of mind that they may not be able to achieve with overseas distributors, some of whom have recently been caught selling counterfeit gold rounds.