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

10 Top Reasons For Getting Fired

The 3 Best States to Start an LLC

10 Jobs That Allow You to Travel

7 High-Paying Jobs You Can Do From Home

12 Best Cities to Shop in USA

10 Best States To Practice Medicine

The 10 Best States to Have a Business

The 12 Most Expensive Apple (AAPL) Apps in the Market

The 10 Richest Billionaires in the World

10 Biggest Kickstarter Failures

The 10 Best Places to Work At

The Top 10 of Google Inc (GOOGL)’s Most Expensive Acquisitions

13 Best Cities to Visit in South America

10 Most Expensive Works of Art of All Time

The 10 Richest Banks in the World

The 10 Best-Paying Jobs in America (2014)

7 Most Expensive Foods in the World

The World’s Top 10 Earning Authors

Five Wicked and Very Expensive Items (and Other “Stuff”) Sold on eBay

10 Biggest Celebrity Bankruptcies

The Top 10 Highest Paid CEOs in 2014

The 10 Most Expensive Real Estate Cities in America

10 Most Expensive States To Live In America

The 10 Best Airlines in the World

The 10 Best-Selling Cars in 2014

The 10 Best Industries to Invest In

The 10 Most Expensive States to Own a Car In

Top 10 Business Schools in US: 2014 Rankings

Top 20 Female Billionaires in 2014

6 Movies That You Should Watch to Better Understand The Cold War

Top 15 Best Paying Jobs for Women in 2014

Top 6 Things Rich People Do Differently Every Day

5 Retirement Mistakes To Avoid (and Einstein’s Famous Quote)

11 Smartest People in the World

6 Films About the Financial World You Need To Watch (While “The Wolf” is Not Around)

Warren Buffett and Billionaires Are Crazy About These 7 Stocks

The Top 10 States With Fastest Internet Speeds

10 Best Places to Visit in USA in August

Top 10 Cities to Visit Before You Die

Top 10 Genetically Modified Food In the US

15 Highest Grossing Movies Opening Weekend

5 Best Poker Books For Beginners

10 Strategies Hedge Funds Use to Make Huge Returns

Top 10 Fast Food Franchises to Buy

10 Best Places to Visit in Canada

Best Summer Jobs for Teachers

10 Youngest Hedge Fund Billionaires

Top 10 One Hit Wonders of the 90s

Fastest Growing Cities In America

Top 10 U.S. Cities for Freelancers

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!