Should you sell or should you hold? Many variables are at play here and easy, clear-cut answers are rarely, if ever, available. The overall sentiment does, however, seem to indicate favourably towards gold and silver at the moment.
Looking at what is happening in the United States, at the moment, shows one possibility – precious metals might emerge as a winner. Trump’s proposed tax plan could boost gold and silver prices and by the end of 2018 it could be as much as $1, 360 per ounce.
However, anything could happen. It is far from clear that Trump actually colluded with Russia and, all things considered, he seems stronger and, despite the main-stream media’s loathing of him, to be on track to revive the United States economy to no small degree. America is still the largest economy in the world, followed by China. The plot thickens, however.
One interesting fact to consider is China’s plans regarding the Petrodollar. China is planning to dethrone the global dominance of the Petrodollar by as early as 2018. China is considered one of the biggest commodity importers in the world today. They plan on no longer using the Petrodollar but instead using their own yuan to buy oil from the Saudi-Arabians which the Saudi-Arabians can then cash in for gold. This might spell catastrophe for the United States’ economy but it may predict interesting times for gold or silver.
It is also interesting to note that Russia has been buying copious amounts of gold recently – the most in the world. CNBC has reported that China is working on a plan that will make it possible for it to price oil in Yuan using a gold-backed futures contract in Shanghai.
The rise of Bitcoin is yet another variable as the world hurtles towards the uncertain future of a cashless society and from hard assets to intangible ones.
Having said this, however, Gerald Celente of Trends Journal has opined, recently, that the demand for gold and silver should maintain their status as the “ultimate safe haven “. He added that the trend toward gold and silver will possibly even accelerate as many people still do prefer to own tangible assets rather than the uncertain digital currency like Bitcoin. He said that when it comes to the potential for gold, the upsides far outweigh the downsides, and if gold should break above $1 400, he maintains, that it will then spike towards $2 000.
This sentiment seems to be echoed by a recent Goldman Sachs press release. It pronounced faith in gold as a “reliable store of wealth” rather than the, as yet, untested cryptocurrency, bitcoin; adding that if gold is not money, then bitcoin is even less so. This says quite a lot, as Goldman Sachs has traditionally not been too keen on gold. Yet, they do seem to clearly prefer the certainties of gold over bitcoin. Bitcoin, it appears, then, is nowhere near replacing gold anytime soon.
It does indeed seem, all things considered, that the price of gold should continue rising. All the primary factors of the last decade are still in place. If gold is above the moving average this usually indicates an upward trend. Gold is currently above 200 moving day average of 1,233 and the 50 day average of 1,254. This means that it could indeed rise even further in the near future. These are the current facts you should consider before you sell silver bullion bars.