It’s taxing to keep a tab of the loans, credit card bills, and utility bills to pay these off timely and avoid incurring any additional charges.
Invest in GOLD and give a boost to your investment portfolio
This precious metal is finally setting its direction to the upside. After months of struggle, this yellow metal seems set in order to experiment with new highs, as the investors in the market have shown their confidence in gold’s bright outlook amidst the fears of the recession being sprung out in people due to the fragile state of the global economy.
The market players and analysts recognized the sudden rise in the gold rate in UAE to the trade war ongoing between the US and China, leading to lower interest rates, increased demand, along with geopolitical tensions around the world. They expect this upward trend to go on and the precious metal’s price to test all-time highs in the coming 3 years.
The experts in this field have said that the gold price is likely to be ranging within $3,000 and $5,000 per ounce by the year 2030 because of the uncertainties over the global economy, as well as inflation and limited supply because of the lower costs of production as the mining costs are rising. If we consider an even more bullish situation, the gold prices might even hit $5,000 within the next decade.
The professional such as the managing director and chairman of Joylukkas Group has claimed that the gold price in Dubai and other regions across the world will be unpredictable in both 2020 and 2021. As per the trend of the gold price in the past 5 years, he also stated that this precious metal has seen a decline in rates in the double digits during the year 2015 when it fell to $1,049.60 per ounce. It was also said that the gold rates began their trend of rising in the years 2016 and 2017 while remaining stable in 2018, and again registering a 6 year high of $1,557.11 in 2019 in September.
To put it in brief, it has been quite a rough decade for the gold industry, especially when we talk about the retail trade. The reason behind this is that the affinity of the customers to the precious metal and jewelry changes with any sort of fluctuations. However, the belief of the consumers in gold being a safe haven when we talk about investment remains firm along with their love that grows continuously to adorn the different types of jewelry.
If we consider the past decade for gold rates, it is not quite realist to predict the next decade. However, the prices of this commodity might continue to be unpredictable in the years 2020 and 2021 in between the uncertainty as well as the global turmoil including the US-China existing trade war, threats of recession, and an overall slowdown in the economy.
We all are aware of the fact that gold has been considered a safe haven since always when it comes to an investment avenue, even though the gold rate in UAE and other countries across the world have faced numerous ups and downs in line with the economic and political events.
Considering the trends for the last 10 years, the gold prices seemed to reach an all-time high in the year 2011’s third quarter, and ever since then the prices have steadily dropped reaching its lowest price in the year 2015’s fourth quarter, and currently, the commodity has been trading at a higher price. The main reasons that have driven this recent increase in price are – the uncertain global economic scenarios, the trade war between China and the US, and a strong dollar.
The professionals in regards to the purchases being affected due to a rise in price have said that the recent high gold price in Dubai has not discouraged the investors from buying this precious metal even though the purchases are made in smaller quantities in the hope for the gold rate in UAE to decline.
When the prices rise and drop, there is a consumer adjustment period involved always, and as of now, we are facing such a period. If one looks at the history of gold over the past 10 years, the major drop and rise in the price of this commodity can be linked to numerous factors such as volatile oil prices, interest rate decisions by the US Federal Reserve, political unrest, and the uncertainty in the global economy.
Professional analysts suggest that the demand for gold is back due to the uncertainty of trade, lower rates of interest across the globe, and concerns over global growth slowing down. The Federal Reserve along with other central banks was prompted due to the trade tensions arising between two of the world’s largest economies to ease the monetary policy in order to counteract a global slowdown.
It has been said that the gold rates are inversely related to the US Dollars. Therefore, when the USD is weak the gold price tends to shoot up because in such times it is more affordable for the investors to purchase. Whereas, a stronger USD makes the gold price to fall because it becomes expensive for the investors to buy.
Experts and merchants have said that considering the history of gold, it is expected for there to be volatility in the coming decade for the gold rate in UAE. It is impossible to come onto an exact figure prediction as there are various economic and political factors involved.
They have also claimed for gold to always hold the value gained as a wealth storehouse with it continuing to be an asset class favored by the investors as a hedge against the uncertainty of the economy and against inflation.
For the longer horizon, it is important to keep in mind that gold has always been seen as a safe asset class for the investors aiming at preserving and protecting their wealth. Therefore, gold and jewelry can prove to be a good investment.