According to Vanguard gold has surged so far in 2019 in part due to global economic concerns like the US-China trade war. There have been record levels of negative-yielding debt globally and signs of manufacturing slowdowns in major economies . However, this does not mean it isn't a good time to invest when your own currency is at risk. This could be a good time to take advantage of lower prices to secure money in hard commodities. It is like the old saying goes "it is worth its weigh in gold."
China has stock piled almost 100 tons of gold to its reserves since it resumed buying in December! This comes with the consistent run of accumulation accumulating amid a rally in prices and the glacial pace of the trade war with Washington. According to Bloomberg, it is worth noting that the bullion is near a six-year high as central banks including the Federal Reserve cut interest rates as signs of a slowdown mount amid the U.S.-China trade war.
In unpredictable financial times, hedge investments can offset losses in another asset class. This is why investors buy gold to hedge against the decline of a currency, in this case the U.S. dollar. As a currency falls, it creates higher prices in imports and inflation.
Learn how to get your hands on some bullion near you!
