The Outlook for Precious Metals Remains Bright
With gold and silver hitting a series of record highs in the past few years, the outlook for precious metals has never been brighter. With the year about to come to a close here are the factors that will continue to make gold shine bright in 2022.
The Geographic Situation Is Uncertain
The world’s geopolitical climate is uncertain as ever, and many experts suggest that the value of precious metals should increase as a result. The world is tense over the situation in Ukraine. Similarly, since the American exit from Afghanistan, the situation in the Middle East is also very tense.
Global Financial Crises
As a result of the global financial crisis of 2008 and the current pandemic, both stocks and bonds have performed poorly for the past many years. Inflation has also shot up due to supply chain constraints across the world which have led to a dramatic increase in inflation. To hedge against these volatile conditions precious metals such as gold provide investors with an instrument that is a proven store of value.
Rise of the Middle Class in Emerging Markets
Countries such as Brazil, China, and India have been on a bull run for the past few years, thanks to their rising middle class. The continued rapid expansion of the middle class is leading to more imports for gold particularly in India where gold is given to brides in the wedding season and festivals such as Diwali. The central banks of these countries are also importing gold in bulk as they want to hedge their foreign reserves against a falling dollar.
Gold Supply Disruption
The supply of gold hasn’t been able to keep up with demand in recent years, and that’s caused the price to go up. Several mines have remained closed due to the restrictions in the pandemic and just when things were starting to improve, a new variant of the coronavirus, omicron, is wreaking havoc once again and disrupting mining operations.
Want to Invest in Precious Metals to Make Money?
With the current state of uncertainties in the U.S. and around the world, we believe that precious metals are an excellent option for investors.
At Orion Metal Exchange help investors buy gold coins and IRAs online from the comfort of their homes. 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.