For the study, 40 analysts and precious metal traders were asked by Thomon-Reuters researchers for their expertise on the development of the gold price. The industry professionals predicted significantly higher prices for 2019 and 2020. At its peak, the industry experts believe that the price could reach a new all-time high next year, at least temporarily.
The precious metals specialists at Swiss Gold Bank (Bank Métaux Précieux), who have built up an excellent reputation over the years for analysing and interpreting developments in the gold market, also believe that the price of gold is likely to rise. And in the past, the analysts at Swiss Gold Bank were mostly right. Using charting techniques and economic forecasts, they were generally able to correctly predict market developments and achieve above-average investment results for their clients.
Swiss Gold Bank’s experts explain the reasons for the current price rise above all by the current global economic challenges and the lack of serious investment alternatives. The threat of Brexit and global trade disputes increase the attractiveness of gold for nervous investors. In addition, central banks have been increasing their gold reserves for years. Private money is also flowing into gold-based Exchange Traded Funds (ETFs) on a large scale. Total demand for precious metals, especially gold, has therefore been at a high level for years.
Germans love precious metals
Precious metals are also among the most popular investments in Germany. According to a study by Steinbeis University, private individuals in Germany own almost 9,000 tons of gold. More than half is stored in the form of bars and coins, almost 4,000 tons in the form of jewellery. Within just three years, the gold treasure of private households in Germany thus grew by 246 tons. Every adult German has an average of 58 grams of gold jewellery and 71 grams of precious metal in the form of bars or coins. If the Bundesbank’s gold reserves are added to private gold assets, Germany owns around 6.5 percent of the world’s gold reserves and occupies a leading position in European comparison.
Dr. Walter Friedrich Schautz, CEO of Swiss Gold Bank, understands the strong interest in gold. The degree of global indebtedness and low interest rates – especially on the bond markets – would give the gold price additional potential for growth. “A demolition of the gold boom is virtually impossible and completely impossible under these conditions. It is not unrealistic to believe that 1,500 or 1,600 euros per troy ounce could be achieved this year. In the medium term, even 1,800 euros per ounce could be achieved.”
Swiss Gold Bank: Products cover the entire value chain
In order to benefit from the rising gold price and at the same time avoid fluctuations in value, experts recommend private individuals to invest in gold savings plans. With monthly savings amounts, investors have the opportunity to invest small amounts in gold bars with providers such as Swiss Gold Bank. With the Swiss Gold Bank savings plan, you can easily protect your capital against currency devaluation and at the same time build up reserves for retirement. Setting up and maintaining a gold savings account is free of charge.
Particularly attractive for investors is the opportunity to participate in the value chain at an early stage. Participate in Swiss Gold Bank’s “Gold Program” in so-called powder gold, which is purchased directly from mine operators and, together with certified partners, refined into fine gold bars with the world-renowned “Green Gold Certification”. “However, the value chain does not end with the sale of a precious metal to the end customer,” explains a spokesman for Swiss Gold Bank. “A small but highly lucrative niche market that we serve for our customers is also the lending of precious metals. The lending value is a maximum of 80 percent and the interest rate is at least 1.5 percent per quarter.