One of the sectors most affected by the positive news that can be generated from the macro data is undoubtedly precious metals. Not surprisingly, they are considered a safe haven asset and, in theory, rise when macro news, from monetary politics or confidence are negative and falls to be positive. That is to say, its mechanics are somewhat particular and in any case it has nothing to do with buying and selling shares on the stock market. And as such, this kind of special investment must be valued.
In this sense, the prices of the gold metal have been showing a clear upward trend in recent months in contrast to other financial assets. Nails on Good prospects regarding its technical analysis, sentiment and positioning. But this year a change in trend may come together that can make you make a bad investment from your positioning in some of the most relevant precious metals. With a very continuous monitoring of operations from now on.
Regarding aspect, there are not few financial analysts who are recommended for this year that investors close all recommended open positions. And that in some cases they have capital gains very close to 80%. It cannot be forgotten that metal investors reacted very badly to some of the macro data that has been released in recent weeks. To the point that gold has lost close to $ 30 a troy ounce in just a few minutes. Although it is also necessary to emphasize that they have reached technical areas of vital relevance to continue in the escalation of their prices.
Gold: investment scenario
It must first be emphasized that gold performs well in both inflationary and deflationary scenarios and is presented as an asset that is uncorrelated with the evolution of the dollar. This is an aspect that you must have to carry out operations with greater or lesser success. In this general context, it must be considered that the excess of global liquidity and the growth of the money supply (M3) are causing a real devaluation of paper money. In Europe, interest rates are below inflation and are therefore negative. The growth of the money supply and inflation are the main reasons why “paper money” loses value on a daily basis.
But your main drawback is that the price of the gold metal has grown a lot in the last two years. And at any other time the corresponding ones have to appear corrections, although the danger is that these are of great intensity from now on. Because as investors well know, nothing goes up or down forever, least of all in this class of financial assets. This is one of the reasons to assess the risk of operations in this precious metal. Because it is true that you can earn a lot of money in them, but also leave you a lot of euros along the way.
Shelter value for 2020
In any case, gold is a shelter value in a crisis scenario. While traditional diversifiers, like bonds and alternative stocks, often fail in times of tension and instability in the markets, the yellow metal has shown to improve the results in terms of the profitability offered, both in times of stability and financial instability in recent years. This in practice means that if things go wrong in the international economy this year, it may be an opportunity to return to the precious metals markets. With a great possibility that your assets can be appreciated in a very marked way.
Another aspect that we must assess at this time is that their movements are very radical. Both in regard to the downward and upward movements and that will determine the success or not of each of the operations in these financial markets. From this point of view, it is very important to analyze the trend of these important financial assets. To know when is the time to enter or exit their positions and in this way protect the money invested in this kind of operations in our relationships with the always complicated world of money.
Market analysis
When it comes to precious metals, not only maximum purity is important, but also reliability, durability and resistance. It is important to have a trusted, qualified and experienced collaborator to carry out the more comprehensive analysis of materials. This is an aspect that must be taken into account when making the investment, especially if we do not want to have the occasional negative surprise for the next few months. Since it is an investment that small and medium investors are not very used to since it is reduced to very specific operations and therefore must be more controlled than in other more conventional or traditional financial assets.
From where a wide range of products is contemplated, it includes a careful selection of semi-finished products with alloys in gold, silver, platinum and palladium, designed specifically for the jewelry industry. One of its most relevant advantages is that these products do not lose value over the years, with the real possibility that they will revalue over time. In this way, it can become a very profitable purchase that can be used at any time to provide liquidity in situations of need in personal accounts. Especially when the profitability of the equity markets is not going through the best of its moments, with depreciations in the prices of the shares.
Through investment funds
Another option available to users is to hire investment funds based on the production of this important raw material. From this approach, it is very feasible to find models that meet these special characteristics and that are developed by management companies outside our borders. Where the most important thing is to direct the investment to very long terms where its real profitability can be collected. While on the other hand, in some formats they can be combined by other financial assets. Both from equities and fixed income or even from alternative investment models.
However, their commissions are higher than those offered by more traditional or conventional investment funds since they can incorporate expenses of up to 3% on the amount invested. In this sense, it is necessary to analyze whether these special investment funds can really be profitable due to the expenses generated in their management or maintenance. By becoming one of the highest within financial products and that can limit the possible gains that can be obtained within their positions. Where it will also be necessary to take into account the tax treatment in this class of financial products and that they are in the same line as the purchase and sale of shares in the equity markets. But ultimately it will be you yourself who has the decision to hire them or not to make the savings profitable from now on from a different kind of investment.
Investment in gold bullion and coins
Gold is a shelter value in a crisis scenario and, that while other investment options such as bonds and stocks often fail in times of stress and instability Of markets, the yellow metal has been shown to improve investment returns, both in times of stability and financial instability in recent years. But one of the options that small and medium investors have before them are gold bars and coins. It is a very original investment, but it can be very profitable in this new year.
In this sense, you can invest in gold through bullion, in various modalities or forms, and also through coins, although for this it is essential that they have been legal tender in the country of origin and that they are sold at a price that does not exceed 80% the value of gold on the free market. You can buy different products of these characteristics, from gold bars of 5 to 2.000 grams, which can have an outlay of between 300 and 15.000 euros; to precious metal coins, among which the "Kruger Rand" or the "Maple Leaf" stand out, and which can be purchased from 250 euros.
At this time, in this market for financial assets, there are gold and silver minted bars with exceptional designs and finishes of the highest quality. Its straight lines, the printed letters and the elegance in every detail, make this type of ingot the most suitable for facing the future with confidence and transmitting security to future generations.