COIN MARKET INSIDER • VOLUME 33 • ISSUE 18

Bright Outlook For Gold

The outlook for gold is bullish for a variety of reasons over and above the possibility that the US might default.

We cannot emphasize enough that there are many methods of physical gold ownership and they are not created equal.

Rare gold coins offer the advantages of privacy, portability, enhanced appreciation due to their scarcity, historical significance, and aesthetic appeal, all of which bring the added dimension of collector demand that conventional bullion cannot.

Amid increasing worries about a possible recession, gold is once again emerging asa secure insurance policy for today’s investors.

After breaching the $2,000 level in early April, gold prices have remained in that range since. But more and more experts are saying that today’s gold prices could be only the start of an enduring price appreciation for the yellow metal — thanks to the possible global recession and uncertainty surrounding the U.S. economy, all against the backdrop of chronic inflation and rising interest rates.

The big Swiss banking firm UBS has published a bullish report on gold.

Gold investors running for the door should stop and consider the longer-term benefits of owning the yellow metal, analysts at UBS say…

UBS gives 3 reasons to buy gold now:

1. Central bank demand for gold should remain robust
2. US Dollar weakness
3. Risk of Recession

We think gold should remain a hedge within a portfolio context, with analysis showing that around a mid-single-digit percentage allocation to gold in a balanced USD-based portfolio would have improved risk-adjusted returns and lessened drawdowns over recent decades.

Even when the threat of a default passes, there are other, longer-term factors in favor of gold.

Gold has dropped by -5.6% from its recent 52-week high of $2,067.

The recent price weakness of gold is due to the unwinding of potential long hedges and large speculators’ positions ahead of potentially positive economic outcomes.

Longer-term factors such as global stagflation risk and technical analysis are still in favor of a potential multi-month bullish scenario for gold.