The rising price of gold : Is Gold the right Investment for the next crisis?

Gold pendants make hopes. After the price of the precious was metal like in the past year, up to 1160 dollars for a Troy ounce (31.1 grams), since the middle of November upward. At times Gold was in the first January days, a lot more of its value, the price climbed to almost 1330 USD. So expensive, Gold is no longer for eight months. Investors jump back in, buy coins and smaller ingots, such as Gold-traders reports. Also supported by the forecasts of experts and banks, such as Bank of America Merrill Lynch, the Dutch ABN Amro or the Bank Julius Baer believe that the price may rise up to 1400 dollars.

are the geopolitical uncertainties, the unresolved trade conflicts, the Brexit, the global economic slowdown and rising interest rates in the US, the plummeting of the stock markets in 2018, and the uncertainty in the stock market, as measured by the persistently strong exchange rate fluctuations. In Gold many investors see against this Background, apparently, back to a safe port.

Euphoric forecasts in the section, however, are not. Recent surveys of 20 banks for the year-end Gold price per Troy ounce of 1284$. Nevertheless, the demand for the precious metal has risen considerably. In November, the number of sold gold rose bullion between 250 grams and one kilogram, significantly, says Benjamin Summa, a spokesman for the precious metals dealer Pro Aurum. In the case of gold coins, the Krugerrand, the Maple Leaf and the Vienna Philharmonic were the absolute bestsellers.

Gold demand rose last updated at

However, some investors did cash in and sold due to the rise in the price of coins and bullion. The other major precious metals trader, Degussa gold trading has picked up business considerably. Since the end of the year, the daily demand had doubled up to 200 kilograms of Gold, reports managing Director Wolfgang Wrzesniok-Roßbach. Currently a buyer for A Kilo to about 36 bars to pay 400 Euro, 500 grams of 18 200, 100 is around 3700, and 20 grams of 750 Euro. Buying-in prices of the dealer are, respectively, slightly below.

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the price of gold is Driven also by the increased demand for Gold funds, so called ETF's. For the provider to put physical Gold. In December, you would have it is at the World Gold Council, the Association of the Gold Lobby in the world 76 tons for around three billion dollars bought. Overall, to be alone in the case of European Gold ETFs, the holdings of 2018, to almost 97 tons of rose.

In the case of the German stock exchange about the demand for the Gold securities, Xetra-Gold in 2018 provided for the purchase of seven tons of Gold. Now, more than 181 tons of storage in the vaults of the company. "In particular, in the fourth quarter, the demand has increased significantly," reported Deutsche Börse Manager Steffen Orben. He expects increasing interest from asset managers and private clients on Xetra-Gold.

Central banks buy Gold

thrust also comes from the Central banks. The Chinese Central Bank alone has bought in December, ten tons of Gold. Russia is expanding its holdings continuously. Also, the Central banks of Hungary, Turkey and India to buy. "The Central banks are again a substantial demand for gold and thus the gold price Supported," said Commerzbank.

consumer advocates and critical financial experts advise, but to caution. "Gold is, and remains, not a really good investment," says Hermann-Josef Tenhagen by the consumer portal Finanztip. Historically, the precious metal have brought only half as high a return as stocks. Anyone who has bought in 1980 at that time, high prices per Troy ounce, had to wait 28 years, until he was at least in nominal terms had reached this value again.

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Gold in the crisis, speculators bet against the Gold

Rolf Obertreis

And who bought in 2011, a Troy ounce of Gold for the 1900 Dollar is today still deeply in the red. Looking at the period from 1975 to 2017, calculates Finanztip, Gold came to a yield of 3.8 percent per year. In the case of a globally diversified equity depot, there were 8.4 per cent a year.