Gold and Emerging Markets
One of the most commonly mentioned topics in the media these days is the volatile state of the financial markets. Many of us are worried about where we are headed and what this could mean for our investment portfolios and retirement plans. If you are feeling a bit panicked, consider diversifying some of your assets into precious metals such as gold as they have strong fundamentals across the world backing them.
Rise of Emerging countries
As economic power shifts, so too does its center of gravity. Emerging economies are becoming more dominant than ever, with the share of the 20 leading emerging markets in global GDP estimated at around 34% by the IMF. A new report published by PwC has estimated that by 2050, emerging markets will represent an impressive 85% of the global GDP.
It’s no wonder that investors and entrepreneurs from these markets will shape the prices of commodities such as precious metals in the future.
Emerging Economies are storing Gold
As economies in the Western world struggle to return to growth and real wages are squeezed, investment demand for gold is surging in emerging economies. Countries such as India and China are building gold hoards as a store of wealth and insurance against bad times. The world’s central banks, too, have been stocking up on gold this year as a way to insure against the financial perils of the future. This is pushing up the price of gold.
Gold Provides Inflation Protection
The US Dollar and other global currencies have lost value over the last decade because of a massive increase in the money supply. Gold and silver provide an opportunity for emerging market countries that seek to protect their wealth and foreign reserves from the perils of devaluation.
Want to Invest in Precious Metals to Make Money?
Orion Metal Exchange is one of the most trusted known precious metals investment dealers in all of America where you can buy gold coins and IRAs online from the comfort of your home. We help people invest their hard-earned money in a wide variety of precious metals such as silver, gold, palladium bars, platinum bullion bars, as well as gold and silver IRA. Request your free investor’s kit here.