Best Strategy to Invest in Gold as Prices Continue to Rise

Gold prices continue to rise on reports that the U.S economy contracted in the first quarter more than analysts had anticipated. World Gold Council’s Managing Director of Investment Strategy, Marcus Grubb, in an interview on Fox Business stated that the rally in prices is partly driven by the fact that many analysts believe the federal funds rate is not going to go higher than earlier thought and that the bonds yield will also continue to recover.

gold-bullion

The whole demand and supply for gold has also improved over the past few months further propelling Gold prices. Mr. Grubb says “ since the start of the year, the whole supply and demand picture for gold has improved significantly, from how bad it was last year.” Increased Demand for gold in India and China is also pushing the prices even higher.

Mr. Grubb says that India and China combined command approximately 50% of the physical demand for Gold, which means that these two countries have a massive impact on the prices. The global gold market stands at $250 billion a year according to Mr. Grubb. New York also has a significant influence on the price of gold. Grubb believes that gold prices are set to continue increasing in the second half of the year, making it a worthy investment depending on the strategy.

Considering there are many ways of playing gold; either by buying it physically, buying stocks of gold miners or buying ETF’s. Mr. Grubb advice for a retail investor to play it safe when trading, by engaging in a mixed strategy; In this case Mr. Grubb said:

“I think  really, a physical gold product is a very good way to execute that, probably physical gold ETF if you don’t want the problem of having to store the gold yourself.”

Mr. Grubb also advices on buying a physically backed ETF or mining shares.  Increase of gold mining stocks value in the past was down to the fact that there was huge borrowing when gold was at a high of $1800 an ounce. Problems kicked in when the value dropped to $1300 an ounce.

Disclosure: none

blog comments powered by Disqus
Insider Monkey Headlines
Insider Monkey Small Cap Strategy
Insider Monkey Small Cap Strategy

Insider Monkey beat the market by 52 percentage points in 24 months Click to see monthly returns in table format!

Lists

The 10 Laziest Countries in the World

The 10 Most Polluted Countries in the World

The 10 Most Dangerous Cities in America 2014

The Top 10 Gold Producing Countries in the World

The 10 Tallest Buildings in the World

The 10 Richest Stand Up Comedians in the World

The 10 Fattest Countries in the World

The 5 Best Summer Jobs for Teens

The 10 Most Religious Countries in the World Keeping the Faith

The 10 Most Educated Countries in the World

The 10 Most Popular Cell Phones in the World

The 10 Drunkest Countries in the World

The 10 Most Expensive Private Schools in the World

The 10 Smallest Countries in the World

Walking Dead Season 5 Spoilers You’ll Wish You Didn’t Know

The 10 Poorest Countries in the World

The 10 Greenest Countries in the World

The Top 10 Countries with the Highest Population in the World

The 10 Most Visited Countries in the World

The Top 10 Star Wars Characters in the Iconic Series

The 10 Most Expensive Android Phones in the World

5 Reasons Why The Illuminati Is Real and a Threat to Society

The 6 Scariest Halloween Costumes Ever Screamed At

The 4 Biggest Hedge Fund Managers in the World Today

The 15 Most Densely Populated Countries in the World

The 10 Biggest Tea Drinking Countries in the World

Top 6 Ways to Improve Your Checkout Process and Close Sales

The 5 Most Profitable Online Businesses You Can Start Today

The 20 Most Profitable Hospitals in the US

The 5 Most Profitable Home Businesses to Start

The 7 Teams that Will Win the Stanley Cup in 2015

The Top 10 Most Expensive Digital Cameras to Snap Stunning Shots With

The 10 Highest Quality Fast Food Restaurants In America Today

The 8 Best Halloween Decorating Ideas to Spook Up Your House

10 Marvel Women that Should Get a Movie Right Now

The 20 Best Remixes of Popular Songs that Will Make You Forget the Originals

7 Most Expensive Cities in the World

5 Least Expensive Cities in the World

10 Celebrities Who Believe In Scientology

10 High Margin Food Products to Build a Business Around

The 10 Most Expensive Clothing Stores in the United States to Get Decked Out At

The 5 Biggest Kickstarter Scams That Swindled Backers’ Donations

The 10 Most Expensive Boarding Schools In the World

50 Crazy Facts About Japan You Won’t Believe

Top 10 Least Expensive Hybrid Cars to Save the Planet With

The 10 Biggest ‘Gate’ Controversies in History

The 10 States with the Highest Nursing Shortages Leaving Their Hospitals Depleted

The 10 Best Value Investment Blogs that Every Investor Must Read

The 6 Cheapest Boarding Schools in Europe 2015

The 5 Most Expensive Cars To Insure in the World

Subscribe

Enter your email:

Delivered by FeedBurner

X

Thanks! An email with instructions is sent to !

Your email already exists in our database. Click here to go to your subscriptions

Insider Monkey returned 47.6% in its first year! Wondering How?

Download a complete edition of our newsletter for free!