Gold On the Way to End the Year at $1,000
Markets were generally up in international trading. The one major exception was Japan’s Nikkei, which lost 391 points today. Hong Kong’s Hang Seng added nearly 200 points, while Australia’s ASX was up by 70 points. In Europe, the pattern of gains largely held.
Gold On the Way to End the Year at $1,000The price of gold is down 2% this month and falling. After a brief respite in the middle of October, gold prices have resumed their downward trajectory. We’re absolutely in line to see gold at $1,000 per troy ounce by the end of the year. The reason that’s bad -- especially in today’s market -- is that, when gold was high, a lot of people put their retirements into gold-backed securities. If your money is stored in a gold-backed security and you’ll be needing it within the next few years, you could find yourself pulling out much less than you put in.
Most investors know that gold is a haven when markets are bad, but despite the rough waters things seem to be turning around for the economy. Jobs have been anemic but growing, and despite stagnant wages more people are finding work. Unemployment is at 4-year lows, and the market is inching back toward 18,000.
For years now, gold has been a smart bet but it looks like those days are coming to a close. Anyone with money in gold-backed securities should think about rolling it over to a more traditional account before the bleeding worsens. The exception is investors who won’t retire within the next 5 years, as there’s plenty of time for gold prices to rebound after that.
Gold-backed securities made huge inroads this last downturn, with every website and analyst touting the as a safe haven for your money. But the reality is that gold is on the downswing, and it will likely end the year right around $1,000 per troy ounce, a far cry from where it was in 2010.
Published on Nov 3, 2015By Aaron Phillips