A recent study conducted by the International Monetary Fund is predicting that commodity prices will fall this year. The global economy is weak and attempts to stabilize it are only serving to increase the risk for dropping commodity prices. The IMF is predicting that prices will likely drop across the board as a result of the unsteady global financial system.
Though commodity prices are temperamental, research conducted by the International Monetary Fund shows that gold value is less likely to be affected by economic turmoil, thus making gold a great option for investors.
Fears that the global economy will further weaken have pushed the yield on the Spanish 10-year bond above six percent. Italy’s bond yields are currently at 5.65%, which is also cause for concern. Bond yields are at the highest level they have been since last year’s launch of the European Central Bank’s first Long Term Refinancing Operation.
Financial uncertainties are rampant outside of Europe as well, as the United States credit rating is downgraded from an AA+ to an AA and expected to drop further in the near future. The poor state of the American dollar and rising interest rates are being blamed for the drop in the U.S. credit rating.
Financial analysts are predicting that restoring credit will be difficult unless major structural changes are made within the U.S. financial system.
As the financial crisis shows no signs of improvement, investors are looking for safe-havens that will protect their portfolios from fluctuations in the market. Gold and silver are good examples of these safe-havens, as they do not carry any counter-party risks.
Analysts predict that the rise in demand for market safe-havens will keep precious metal prices high despite the shaky economy. As more people invest in low-risk assets, however, fewer of them will be available, and safety in the global market will come at a high price. Investors are expected to carefully evaluate the intrinsic characteristics of future investments before they commit.
Gold’s safe-haven status ensures its long-term stability in an otherwise fluctuating market. The high price of gold in comparison to other commodities means that there is no better time than now to sell. If you have tarnished, broken, or outdated gold jewelry lying around the house, you can potentially make a ton of cash.
But can you tell how much your gold is worth? That’s where the Gold Value Calculator comes in. Simply input the attributes of your unwanted gold online, and we’ll give you an instant estimate of its worth.
With the market price of gold so high, you don’t want to risk getting shortchanged. Estimate your gold’s worth with the Gold Value Calculator before you sell so you can get the most money for your gold every time.