That’s a loaded question that can garner many different “answers’, I say opinions, dependent on who you ask.
Some will say it all started with the Brexit, Britain making it loud and clear they would like to exit the EU. This is right around the time that everyone noticed that gold was no longer wanting to go below $1,000/ozT
Then, you will have some tell you it’s due to the massive debt that the U.S. is carrying ($19.4 T) and how America will never be able to repay the debt, let alone the interest payments on the debt if the interest rates are increased.
Can’t forget the QE coming from every corner of the globe at the moment either. Quantitative Easing or money printing. Just as anything else, the more there is of any one item, the less value that item has. Hence, the argument that QE is massively devaluing any currency that participates. The US was printing roughly $85 billion per month for, give or take a few weeks, one year. That’s over $1 trillion dollars added to our debt in one year…$1,000,000,000,000.00. Lot of zeros there.
I like the argument about negative interest rates popping up in around 30% of influential banking entities charging individuals to hold cash in their banks. This one really stands out to me as one that the masses would do a double take at their banker.
Our opinion here at PMNews however is a little different than the rest of the world. Can’t say we’re the only one with this thought, but the company kept with this thought process has been alone for some time.
We see the gold market going up due to the fact that portions of the precious metals markets have adjusted operations to accommodate sharia law. This is a historical event that has not been discussed by, but a handful of individuals. A big portion of business’s and firms that belong to the nation of islam could not partake in the gold market due to certain self-restrictions that did not sit well with the religious aspect. Now that some rules have been changed here and there, buying and selling gold has just been opened up to an entire section of the market that has not been allowed to partake.
Stay tuned for a dedicated piece to these changes, the time line and who was involved.
All the reasons listed above would be factors we would not argue with concerning the rising price of precious metals at the moment, and why they will continue to increase in value over the coming years.