Some investors may be wondering if they’ve missed their opportunity to buy gold, but the market seems poised for additional upward growth in the value of gold. Gold investments are at an all-time high and demand for gold is still increasing. Some of the world’s largest investors see gold as a hedge against the declining value of the US dollar, and as a way to diversify their risk in global currency markets.
China has made major investments in gold, purchasing more than $50 billion in just the past 12 months. The demand for gold in India is also rising more than 25% in the last decade, despite steady price increases. Total consumer demand for gold in India was slightly less than 1,000 tons in 2010, and is predicted to rise to 1,200 tons annually by 2020.
The growing world demand for gold is, in part, a reaction to prolonged turmoil in the major global financial markets. Amid fears that the United States will default on its enormous debt, economists are also mulling over the prospect of a financial collapse in Greece, and the impact it may have on other vulnerable European economies.
In addition to a growing worldwide demand for gold, investors in troubled economies are snapping up gold reserves as questions about their paper currencies linger. Greek investors have expressed a recent, significant demand for gold, and analysts expect the demand for gold to increase in persistently troubled countries in Europe and North America. All major European fiat currencies have fallen against the price of gold, and investors are scrambling to cover their potential exposure to dramatic drops in the value of their primary currency-based assets.
Investing in gold remains both easy and private for individuals, and the market for gold operates independently of those for currency-based assets. The price of gold is poised to protect buyers against losses in the value of paper currencies, and many investors are moving to add gold investments to their current holdings. For investors who are considering the potential of gold, significant indicators show that now is the best time to be buying gold.