What is the forecast for gold in 2018?

Despite a lot of uncertainty around the world, gold had a respectable year in 2017. Up 11.3 percent for the year is not a bad result when you consider the near-chaotic start of politics all over the globe. But what will happen in 2018? Let’s take a closer look.

Gold is shinier in January than it is in December.

Gold almost always hits good prices in January and has done the same this year as it has in 11 of the last 15 years. Whether this is down to positioning for the rest of the year, or just to beat the January blues is anyone’s guess, gold has certainly started 2018 well.

The dollar is weaker.

As any financial analyst will tell you, 2017 may have marked the end of the long period of US Dollar strength. When currencies start to weaken, investors tend to buy gold as protection. So as the dollar is weakening, it could be an exciting year for coin and bar owners. It’s fair to say that gold has faced something of a headwind since 2011 as the dollar has been rising in value but the winds could be changing direction over the next 12 months or so.

Stable supply

The supply of gold hasn’t changed much over the past couple of years, so the next year should be good for owners of gold coins and bars. If the price of gold goes up, gold recycling increases, and then the price goes down again. So, if you have gold, hold it for now, and be ready to buy more, knowing it will go up again.

More potential crises?

2018 is beginning with a reasonable amount of turmoil all over the world. And as history shows, gold is something investors turn to when crises become apparent. So, if there are any world crises - especially in the stock markets of the world - could gold holders benefit? Almost certainly, as in times of trouble, the price of gold goes up.

Gold bull market still intact

According to HSBC’s James Steel, the long-term future for gold is in good shape. While there have been fears of a new recession, a slowdown in the economy of China, and economic chaos in Greece, there has been no slowdown from successful investors buying gold in the past dozen years. So, while the pace may slow, the outlook for gold bar and coin owners is that gold’s investment potential is still very attractive.

The right conditions

Finally, the economic conditions in Europe look suited to price rises in gold. The increase in price last year was helped by the turmoil caused by the Brexit decision. And if there are more threats to withdraw from the EU by other countries, there could be a huge currency collapse. If that happens, only one thing is for sure - investors will almost certainly be looking at increasing their stocks of gold, and the price will rise.

If you are looking for a secure investment for 2018, then gold coins and bars could be just what you are looking for. Visit www.bullionforless.co.uk or pop into our convenient Cardiff location for friendly help and advice from our knowledgeable staff.