During economic instability and uncertainty, no investment options could offer protection and financial security but gold. Although Bitcoin gripped the attention of markets for some time in last year, yet its fall by 32% in December again corroborated the fact that the financial security offered by Bitcoin is nowhere close to gold. Apart from this interesting fact, there are a few good reasons that investors should look at and go ahead with the purchase of gold and gold bars.
The rise in Inflation Rate
The current inflation rate is 1.9% as a result of extreme highs in the stock market. And the investors are overwhelmed with the uncertainty in the stock market as it is constantly hitting records. There seems no reason for people to be adamant about being in the stock market and ultimately they are forced to exit. The fluctuations in the economy can be seen and people are backing out from the world of the stock market while stepping on to the land of gold markets. This may lead to an increase in the price of gold as most people are shifting towards it considering it a safe haven. And, considering the hike in the gold prices, it would be advantageous for people to buy this precious metal. They can also purchase gold conveniently in the form of gold bars.
Reduced Short-Selling in Gold
The decrease in short-selling in gold also signifies the rise in the gold prices. Short interest is falling and therefore short positions on the stocks of gold are far less than before. This may impact on the gold rates which in turn can offer enticing investment prospects to the investors.
The gold is a precious metal that is consumed on a massive scale globally. The high consumer demand in countries like India and China influences the rates of the gold. There is consistency in the demand and so will be in the prices. It’s a great opportunity for people to invest their money in gold and get the benefits from hefty returns from the same. Buy high-quality Valcambi gold bars in any size, weight, and quantity here at Bullion Case.