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Why the Price of Gold Will Continue Rising

In the past few months, gold is now beginning to spark a new life. The price of gold finally came out of its six-year bear market rut. In 2011 the price of gold peaked at an all-time high of $1,900, only to descend to $1,060 in 2015.

Since then, the price of gold has fluctuated from $1,100 to $1,340. It wasn’t until June of this year where gold finally broke past the $1,350 barrier and into $1,400s. Furthermore, within one month of breaking $1,400, the price of gold rose to $1,500, where it stands today at $1,508.

Thanks to new digital currencies such as Bitcoin, many individuals see gold as an outdated barbarous relic. However, contrary to popular belief, there is a lot of global demand for gold, and the gold market is much larger than the crypto market. The price of gold is at all-time highs in more than 72 countries around the world.

The World Is Buying Gold

Today many central banks around the world are buying gold like there is no tomorrow. Countries such as Russia and China are purchasing gold like never before. But why? Well, they’re preparing for the dollar collapse; in fact, many countries in the world are.

The US government has a significant debt problem that is unsustainable. The only reason why the US can maintain it’s liabilities is through the use of issuing low-interest rates treasuries. Right now, many investors and central banks around the world are willing to lend the US government money even with the rates being low.

However, this only occurs because interest-rates in countries all over the globe are abysmally low — many European countries are now issuing negative-yielding bonds. Moreover, a small two percent interest rate will look great when compared to a negative half-percent rate.

Gold Prices Will Rise Rapidly

Historically, gold strives well in this environment. Honestly, I believe the price of gold low compared to the amount of debt the world owes. However, the value of gold will rise as the Federal Reserve, and other central banks begin to resume their easy monetary policy.

Countries all over the world will go deeper into debt; to continuously stimulate their ailing economy. However, at some point, consumer prices will skyrocket, causing not only investors but the average individual to purchase gold.

Countries all over the world will go deeper into debt; to continuously stimulate their ailing economy. However, at some point, consumer prices will skyrocket, causing not only investors but the average individual to purchase gold.

Once inflation begins to hit the middle-class consumer, we’ll see a new gold rush that will occur throughout the world. And for those who own gold, will see their wealth strengthen.

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