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Investment experts are encouraging people to begin investing in precious metals over the next year. Though gold and silver tend to remain a steady and low-risk investment throughout most economic periods, people are starting to look at 2020 as the year to really put their money into precious metals.

Off to a good start 

Both gold and silver entered 2020 at a very good start as a direct result on the increase in prices towards the end of 2019. Before the new decade began, the price of gold in particular had risen to 15%, a fourth year in a row of the metal rising in price. Due to this increase, the price of gold and silver in 2020 are forecasted to rise even further.

The effect of the political landscape 

It has been predicted that 2020 will bring a very rocky political landscape. With Brexit, a US election, the effect of COVID-19 and the rising tension on the international stage, political unrest is forecasted for most of the coming year. As known in the industry, a turbulent political landscape can lead to a soar in gold and silver prices, as well as investment in both metals.

This is because political tension both domestically and internationally disrupts economies. Foreign direct investment tends to decline when a country is facing political issues, which in turn slows economic growth and reduces the value of international equities.

A slower economy can lead to a decline in currency, reducing exports, debt repayments and impacting bond markets. All of this reduces the value of financial assets that investors tend to rely on, making them turn toward gold for stability in turbulent times.

On this subject expert Robert Kiyosaki has stated that: “silver is the most undervalued, lowest-risk, best investment of all asset classes” and that investing in precious metals is the best way to “…prepare for, and profit from the turbulent economic times we see for the future.”

The start of a commodity boom

According to commodity strategists, a large commodity boom within the gold and silver markets is due between 2020 and 2023. As a result, more people will be investing, creating a type of mania that will lead to a major increase in gold and silver prices. This surge in pricing is set to occur soon, so investment experts are encouraging people to start purchasing gold before the price soars.

According to James Anderson writing for ValueWalk, during this commodity boom “the mania for these two precious metals should reach historic levels outperforming any bullion bull market prior and probably to come in any reader’s lifetime.”

Start investing

It is therefore clear that in order to jump start the commodity boom and get ahead of the mania that is due in 2020, investing in gold and silver now is an extremely savvy investment decision to make.