In a historic week in precious metals investment, the price of gold broke through the $2000 dollar per ounce mark.
After crossing the $2,000 milestone, gold continued to register gains yesterday, further adding to its all-time high. Don’t forget, it was only a week prior that gold stormed through the previous, longstanding all-time high of $1,922 per ounce, reached in 2011.
At the time of writing, 6th August at 16:00, the price of gold sits at $2,067.66 per ounce. The continued upward trajectory of the gold price is nothing short of remarkable.
Why is the price of gold soaring?
While indeed remarkable, precious metals expert, Andrew Maguire believes the positive price action gold is entirely logical, stating you “couldn’t ask for a better scenario,” for a historic gold rally. A unique combination of strong physical bullish drivers and paper market forces are powering the gold price to successive all-time highs.
Additionally, amidst the economic uncertainty of the COVID-19 pandemic, the unlimited Quantitive Easing of the US Federal Reserve is weakening the US Dollar. As more US dollars are pumped into the economy, the dollar simply devalues against the price of gold.
Watch Andrew Maguire’s in-depth explanation of the surging gold price and his outlook for the future, in last week’s Talking Gold from fortnightly Kinesis show ‘Live from the Vault’.
Precious metals industry outlook on gold
A wholesaler himself, Andrew Maguire, reports that further increases in the gold price are anticipated among fellow wholesalers.
In this market, Andrew Maguire states that very few wholesalers are willing to sell physical gold bullion at current prices. As Andrew Maguire sees it, very little “vaulted gold bullion will come to sale, at least, until gold reaches $2500 per ounce.”
Gold and fiat currency
As the US dollar devalues, physical gold bullion goes from strength to strength.
The impact of economic unease on the US dollar highlights the instability of fiat currency and fragility of the traditional economic system. Serving as an important reminder of the personal economic stability digital physical gold can offer the global community.
As well as providing low-cost access to allocated gold investment, Kinesis enables users to conduct their everyday finances in the stable value of physical gold and silver. Kinesis users can shield their earnings or savings from the instability of Fiat currency, while making everyday purchases in physical gold or silver with the Kinesis VISA card.
In a period where the frailties of traditional currency have been laid bare, Kinesis brings a true store of value to our users’ everyday spending.
Start spending in gold today.
