Last February, I wrote about the advantage of Gold investment here in Japanese. I think the theory behind it was supported by the current increase in the gold price. Therefore, I will translate what I wrote there into English.
The gold price was around 1280 dollars per ounce when I wrote the article, and now it is around 1341 dollars per ounce.
"I have thought that Gold investment would be the best option in this world's current situation. One reason would be that the European central bank and The Bank of Japan are still executing inflation policy. The fact naturally contributes to the gold price positively."
"The other reason is that investors, in general, have been concerning themselves about the stagnancy of the U.S. Market. The trade war between the U.S. and China, Brexit and, it is minor though, Japanese consumption tax hike is also worrying people."
"That opaqueness of the economy leads to the raise of the Gold price. "
"On the other hand, the things that might cause a price drop of the Gold would be that European Central Bank is willing to end the monetary easing policy which leads to raising the Policy rate. That harms Gold prices. What is more, there have been developing fields such as AI, Auto-piloted vehicles, and Robots. They possibly can suck money which would be invested in Gold otherwise."
"Taken together, however, it is safe to conclude that it is a good option to put Gold in your Portfolio because the future of the world economy is still unclear, and in that situation, Gold investment is a very rational option in theory."
Next time, I will write about gold investment again, considering the current situation.
No comments:
Post a Comment