Share This Article

Facebook LinkedIn
Twitter Reddit
Print Email
Pinterest Gmail
Yahoo
Money Morning
×
  • Invest
    • Best Stocks to Buy
    • Stock Forecasts
    • Stocks to Sell Now
    • Stock Market Predictions
    • Technology Stocks
    • Best REITs to Buy Now
    • IPO Stocks
    • Penny Stocks
    • Dividend Stocks
    • Cryptocurrencies
    • Cannabis Investing
    • Angel Investing
  • Trade
    • How to Trade Options
    • Best Trades to Make Now
    • Options Trading Strategies
    • Weekly Trade Recommendations
  • Retire
    • Income Investing Guide
    • Retirement Articles
  • More
    • Money Morning LIVE
    • Special Investing Reports
    • Our ELetters
    • Our Premium Services
    • Videos
    • Meet Our Experts
    • Profit Academy
Login My Member Benefits Archives Research Your Team About Us FAQ
  • Invest
    • Best Stocks to Buy
    • Stock Forecasts
    • Stocks to Sell Now
    • Stock Market Predictions
    • Technology Stocks
    • Best REITs to Buy Now
    • IPO Stocks
    • Penny Stocks
    • Dividend Stocks
    • Cryptocurrencies
    • Cannabis Investing
    • Angel Investing
    ×
  • Trade
    • How to Trade Options
    • Best Trades to Make Now
    • Options Trading Strategies
    • Weekly Trade Recommendations
    ×
  • Retire
    • Income Investing Guide
    • Retirement Articles
    ×
  • More
    • Money Morning LIVE
    • Special Investing Reports
    • Our ELetters
    • Our Premium Services
    • Videos
    • Meet Our Experts
    • Profit Academy
    ×
  • Subscribe
Enter stock ticker or keyword
×
5 Ways to Beat the Fed (and Crush Inflation)

Email this Article

Send with mail | ahoo instead.
Required Needs to be a valid email
Required Needs to be a valid email
Is Gold a Good Investment in 2017?
http://bit.ly/2GCdnjv
Required Please enter the correct value.
Twitter
Stocks: ABX, GG

Is Gold a Good Investment in 2017?

By Money Morning News Team, Money Morning • May 24, 2017

Start the conversation

Comment on This Story Click here to cancel reply.

Or to contact Money Morning Customer Service, click here.

Your email address will not be published. Required fields are marked *

Some HTML is OK

We expect gold prices to gain 11.7% this year thanks to rising demand and slipping global supply. That means gold will be a great long-term asset to have in your portfolio this year.

Video
3 Catalysts That Will Boost Gold Prices in 2017

Despite some weakness over the last month, the gold price is up 8.8% to $1,253 so far in 2017. And Money Morning Resource Specialist Peter Krauth expects it to rise another 11.7% to $1,400 per ounce by the end of this December.

But while physical gold could give you that 11.7% return in just over seven months, we're looking at another gold investment that could see a more explosive gain. This gold mining stock could potentially soar 63.6% over the next 12 months.

Before we get into that, here's how gold prices have trended this year and what their rebound could do for our gold stock recommendation today...

Gold Is Still a Good Long-Term Investment Despite Recent Declines

Investors might be worried about gold because prices dropped from late April to early May. The metal fell 6% from $1,294 on April 18 to $1,216 on May 9.

is gold a good investmentOne factor was the election of French President Emmanuel Macron on May 7 over right-wing candidate Marine Le Pen. After the first round of the election on April 23, Macron's huge lead over Le Pen reassured investors there would be no market volatility. They speculated that Le Pen winning would have resulted in France pulling out of the European Union (EU). A Frexit following last year's Brexit would have further destabilized the already fractured EU, possibly leading to a big stock market sell-off.

But Macron's victory meant no market volatility. Since gold prices typically rise when the market dips as investors use gold as a safe-haven hedge, the metal instead fell to a two-month low of $1,216 on May 9.

Trending: The 4 Best Silver Investments of 2017

Still, gold's brief decline was only temporary. After all, the metal has rebounded 3% to $1,253 since the May 9 bottom. Krauth believes this rebound will continue to $1,400 per ounce, and there's one important reason why he's bullish...

It's simple: falling supply and rising demand.

Krauth's forecast is driven by gold fundamentals. Demand is climbing around the world at the same time as supply is falling. That's a perfect recipe for a rising gold price this year.

Recent data from the World Gold Council showed that global demand in the first quarter was 1,034.5 tons. Gold supply during the same time frame was 1,032 tons. As you can see, supply is coming up short of demand.

Demand for gold is steady worldwide. Investors in Europe, especially in the UK and Germany, purchased eight times more gold exchange-traded funds (ETFs) than investors in the United States. Moreover, Q1 2017 was the third consecutive quarter that gold ETF demand from Europe was greater than U.S. demand. This likely indicates the unease caused by the Brexit and the prospect of Frexit.

Gold demand has also remained strong in Asian countries. Recently, a UBS research report on gold indicated an expectation of gold prices trading in a tight band for a while as concerns over the French election subside. UBS also said that the price of gold falling near $1,200 might spur discount buying.

All of this shows how gold is set to continue its rebound throughout 2017. But instead of investing in physical gold, we recommend buying this gold mining stock, which could rally 63.6% by May 2018...

The Best Gold Stock to Invest in This Year

Join the conversation. Click here to jump to comments…

Login
guest
guest
0 Comments
Inline Feedbacks
View all comments
LIVE
Visit Money Morning Live


Latest News

January 19, 2023 • By Money Morning Stock Research Team

These Stocks Could Go To $0

January 9, 2023 • By Money Morning Stock Research Team

The Government Is Pouring $391 Billion Into These Stocks - Buy Now

December 27, 2022 • By Money Morning Staff Reports

6 IPOs in 2023 You Can’t Afford to Miss
Trending Stories
ABOUT MONEY MORNING

Money Morning gives you access to a team of market experts with more than 250 years of combined investing experience – for free. Our experts – who have appeared on FOXBusiness, CNBC, NPR, and BloombergTV – deliver daily investing tips and stock picks, provide analysis with actions to take, and answer your biggest market questions. Our goal is to help our millions of e-newsletter subscribers and Moneymorning.com visitors become smarter, more confident investors.

QUICK LINKS
About Us COVID-19 Announcements How Money Morning Works FAQs Contact Us Search Article Archive Forgot Username/Password Archives Profit Academy Research Your Team Videos Text Messaging Terms of Use
FREE NEWSLETTERS
Total Wealth Research Power Profit Trades Profit Takeover This Is VWAP Penny Hawk Trading Today Midday Momentum Pump Up the Close
PREMIUM SERVICES
Money Map Press Home Money Map Report Fast Fortune Club Weekly Cash Clock Night Trader Microcurrency Trader Hyperdrive Portfolio Rocket Wealth Initiative Extreme Profit Hunters Profit Revolution Warlock's World Penny Nation Quantum Data Profits Live Trading Alliance Trade The Close Inside Money Trader Expiration Trader Vega Burst Trader Flashpoint Trader Darknet Hyper Momentum Trader

© 2023 Money Morning All Rights Reserved. Protected by copyright of the United States and international treaties. Any reproduction, copying, or redistribution (electronic or otherwise, including the world wide web), of content from this webpage, in whole or in part, is strictly prohibited without the express written permission of Money Morning.

Address: 1125 N Charles St. | Baltimore, MD, 21201 | USA | Phone: 888.384.8339 | Disclaimer | Sitemap | Privacy Policy | Whitelist Us | Do Not Sell My Info

wpDiscuz