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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.

  The history of gold as a commodity Since humans began trading and exchanging goods, gold has been in circulation as an incredibly valued commodity. The gold markets date back to as early as 3000 BC.C, initially used as currency and eventually melted and reshaped to form jewellery. Gold quickly began to represent wealth throughout the world, with metal based currency as one of the most popular ways to show this in modern times. Coins in Great Britain were introduced in 1066, with their value based upon the amount of gold or silver that they represented. With a high rate of destructibility, most gold ever mined is still in circulation now; recycled gold that has been reshaped makes up a third of the global supply. Despite this, gold is still a limited resource, making its value much higher than other precious metals. To this day, gold is still vital in the modern economy, even if it is no longer present in everyday transactions. It has preserved wealth throughout generations; something that cannot be said for other currencies and commodities. The crisis commodity  Known as a ‘crisis commodity’, gold is an investment that people tend to make during times of political and economic uncertainty. These times reduce confidence in the global economy and banks, lowering the overall value of the financial assets people usually rely on. As gold is outside of the banking system, people turn to it for stability. A tangible asset, gold holds it value regardless of crisis or inflation, offering consumers, investors and enterprises a safe form of financial diversification. By diversifying your investment portfolio, you lower your overall investment risk, protecting your assets. A rise in value With the price of gold increasing by 15% in 2019 and expected to rise further in 2020, strategists are predicting a large commodity boom between 2020 and 2023. In addition to this, as a result of Brexit, the US election and other political events occurring over the next year, increasing political unrest is also anticipated. Investment experts are saying that now is the perfect time to invest. They are advising people to use gold as a type of insurance to rely on in turbulent times, a way to preserve their wealth against the changes of the economic tide - and it is best to invest now before the prices rise during the boom. Making a profit Many people look to gold investment as a way of making a profit. If you buy gold when the value is lower and then sell off your investment once the prices rises, a large profit can be made if done correctly. This method does come with a risk, as despite the stability there is always a chance of the value dropping once you have purchased your gold. However, as detailed above, the price of gold is predicted to surge. So if you want to make a profit on your investment, now is the time to buy. Whether you’re new to gold investment or a loyal bullion buyer, BuyBullion24 is the perfect platform to invest, collect or save. We’d be happy to help you make your decision, so contact us if you require any further support.