Gold Value Predictions: Rally By Another 50 Percent
Tags: Altcoins, Gold, Economics, Cryptocurrency, USA

E.B. Tucker of Metalla Royalty & Streaming has been making all the right calls on gold this year. He made a $1500 gold value predictions in December 2018. Tucker, the director of the metal royalty and streaming business, made the outrageous prediction when gold prices were at $1,237. At the time, gold prices had dipped to some of their lowest values of the year.

In the first quarter of 2019, when an ounce was selling $1,300, Tucker doubled down on his $1500 an ounce call and asked investors to get on the bus, before the rally took off. A few weeks later, gold hit the $1,500 price range. The gold and silver streaming business expert now has made a new forecast on gold.

In an interview at the September 2019 Denver Gold Forum, Tucker said that gold could rally by another 50 percent. He said that these gold value predictions have become inevitable as the global debt crisis, balloons out of proportion.

Global Debt at Unmanageable Levels

The global debt rate is at its highest in the last seven decades of relative peace. Some of the largest economies in the world have an average debt rate of 70 percent of their GDP. According to an analysis by the Deutsche Bank, the only other time debt has spiked this high was during the Second World War.

A case in point is the US debt burden, at an all-time high of $22 trillion. According to estimates by AB Bernstein, this level of debt is about 1,832 percent of the nation’s GDP. The sky has been the limit for America’s borrowing, making it a nation founded on debt. Indeed, data shows that in 1790, the fledgling nation had a 30 percent debt to GDP ratio. The country owed millions of dollars to the French government and Dutch bankers and other nations in the Eurozone.

By raising the taxes and tariffs, they paid off much of the debt, shrinking the debt to GDP ratio lower than 10 percent. Unfortunately, the war era came knocking. By the end of World War II, the debt to GDP ratio had risen by 113 percent. The nation had a deficit of $241 billion, an equivalent of $2.87 trillion by today’s dollar values. Unfortunately, unlike past wars, most governments did not reduce the debt accumulated after the Second World War.

The Consequences of Public Debt in A Recession

Since then, federal governments have turned to borrowing to fund their expenses. The deficit has escalated further in the US since President Donald Trump took over the helm of the country. The only positive aspect to the vast US ceiling debt debate is that unlike many other economies equally riddled with debt, the US debt has shown no signs of imminent default. The nation’s financial institutions are robust and proactive, and its productive capacity of the economy is still promising.

It is nonetheless impossible to overstate the consequences of large amounts of public debt, as factors such as sharp drops in revenues occur with the global economic slowdown. The UNCTAD in its 2019 Trade and Development report has sounded a warning over the status of global debt. The UN body says that a recession in 2020 is imminent because of the troubled world economy.

The trade and investment organization said that global growth has fallen from 3 percent in 2018 to 2.3 percent in 2019. While some economies are in a recession, other economies like the UK and Germany are on the brink of one. The UNCTAD has warned that the overreliance on monetary easing policies to stimulate the economy will not produce much of an effect. Why?

A decade since the last economic crisis, the global economy is still fragile and over financialized. Therefore, the lowering of interest rates as most global central banks are doing, and the quantitative easing needs to be replaced by wage-led growth rather than finance-led growth.

Investors Turning to Gold

Spooked by the effects that political and economic events have had on the economy, many investors have fled the stock market for safe-haven investments including gold. Investments in Treasury securities have given many investors peace of mind.

Unfortunately, the state of this once treasured asset is in tatters, in the Euro Zone especially, thanks to negative yields. The low-interest rates environments have deprived investors of the decent income they would attain from government bonds. Bond investors who had fled from stocks have been displaced by the uncertainty of a recession and low-interest rates.

This general lack of confidence in conventional assets has been good for gold. The precious metal values are up by over 20 percent year-to-date. Depressed economic data from the European Union is adding more fuel to the gold rally, as investors prepare themselves for a tumultuous financial period.

Manufacturing activity in the Eurozone has shrunk, posting its worst values in seven years. Add to this the escalating China and US trade war plus peace uncertainties in the Middle East and the hopes of a quick resolution and a recovering economy are quickly fading from view.

Tucker’s Gold Value Predictions Open New Opportunities

E.B. Tucker’s gold value predictions about gold surge by a further 50 percent in value is, therefore, a strong possibility. Tucker says that the secret to great investments is to get the picture right the first time. Any investor that understands an asset’s journey need not to do much more than to simply stay in the trade. He said that gold traders who have sold off the asset at the first sign of risk are doing it all wrong.

Tucker says the same of gold investors that get into the rally when the prices are too high. He advises investors to get in the rally early so they do not miss on the opportunity to rake in more value as the asset’s prices rise. The current gold rally has caught little media attention because investors had grown accustomed to a dead gold market, with prices remaining static since 2013.

Time to Buy Gold

This apathy Tucker has been useful for the new investor because most people get enthusiastic only at the top of a bubble. It is, however, a poor investment strategy to get excited at the wrong time. Thus, Tucker’s gold value predictions may be a sign for most investors to buy. The purchase of gold is, nevertheless, a complicated process, especially for the novice investor.

There are very many hurdles a gold buyer will face with integrity, honesty, and trust during the purchase. You first need to ensure that you only buy gold bullion or coins from a reputable and established business. You should verify their industry trade references for safety.

The other problem that an investor could face is the differentiating fake gold coins and bars from those that are genuine. There are many cases where buyers buy lowly priced gold only to find out later that it is a counterfeit. After the purchase, a buyer also needs to establish adequate transportation and storage processes. You, therefore, have to find a verified and secure third-party storage facility to secure your assets. These large number of requirements can be off-putting to the new buyer.

Easy Gold Purchase Process from Novem Gold

If you have decided to obtain some gold, based on the gold value predictions and the uncertainties we are observing in the world, Novem Gold is the best solution for you. Novem Gold has, however, designed an easy gold ownership process. Leveraging the power of blockchain technology, the expert gold dealership has designed the NVM and NNN tokens to enhance flexibility and security in the gold purchase. Novem Gold is a precious metals and gems business based in Vaduz, Liechtenstein. Their NEO-blockchain-based tokens are disrupting the traditional gold selling industry, making gold accessible to any buyer in any location in the world.

The coins are 100 percent backed by LBMA-certified physical gold. When you buy them, you will automatically own your own high-quality gold. It will be stored in their secure storage facility in Liechtenstein. This means you do not have to worry about the validation of the quality of the gold. The high-quality LBMA-certified gold backing these tokens is already verified on the blockchain.

There is no need to worry about storage and insurance costs since they cater to these costs via the purchase of the tokens. If you want to, you can redeem your tokens for their LBMA-certified physical gold equivalent in seconds.

To learn more about Novem, visit: https://novemgold.com

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