Gold News: Will Gold ever Recover?
Gold News
Much has already been discussed about Gold’s seemingly endless free fall, leaving some to speculate that it may never recover. While gold will almost surely be seen as a metal with high value, there are reasons to believe that it will continue to struggle in the net few years.
The reason for the decrease in gold price has been the imminent rate hike. At first glance it would appear that the rate hike will happen soon, and then after that the price will bottom out. However, that may not be the case, as gold has concerns other than the rate hike.
The other factor that will impact the gold price will be related to mining. In the past few years the gold mining companies have been growing. If the mining industry will continue to grow then gold’s price will suffer. On the other hand if the price becomes to low, mining companies will shut down, making old bullish again.
The ambiguity of where the mining industry is heading makes it uncertain when gold’s slump will end. That being said it’s unlikely the will ever not have a strong value. Over the last 150 years gold has had a cycle of going up and down. While this is fall is larger than most, it isn’t unprecedented. The price of gold may also e at a six-year low, but it’s current price is still higher than it ever was just 15 years ago.
So don’t expect Olympians to be wearing a silver medal at the top of the podium any time soon.
