Gold investment June 2019

It is apparent to every rational investor that buying gold is a good option in this economic situation. That is why the price of gold has been increasing. What is the theory behind it, and is it still an option to buy gold at the current inflated price, say, 1341 dollars per ounce? 16th June 2019

In short, the Gold price goes up when inflation occurs, and interest rates go down. And the price goes down when deflation is ongoing, and interest rates go up. The point here is that the current situation firmly tells us we should buy gold. That is based on two reasons; 1. The central banks are willing to cause inflation yet. 2. Fed stopped herself from raising the policy rate.

However, the main concern about buying gold is the flourishing stock market in the future. If the stock market became likely to boom, people would invest in the stock market instead of gold. However, it is unsure that a flourishing economy is unlikely, considering the current economic situation.

In conclusion, buying gold seems still a good option in theory, but it appears wiser if you wait for the Gold price correction before purchasing because it has increased its price almost drastically this year. Moreover, You need to wait for the opportunity when you can buy gold cheap because it does not generate any interest at all. The timing would be critical.

When would be the best timing then? Nobody knows.