At midnight on New Year’s Eve, everyone gathers around their television or mingles with friends, and begins the countdown: 10, 9, 8, 7, 6, 5, 4, 3, 2, 1… HAPPY NEW YEAR! Someone might pop open a bottle of champagne, people may throw some streamers in the air. It’s a time of joyousness and fresh starts. This applies to many things: someone might decide to start a new exercise routine, someone else might pick up a pen and start drawing again, or maybe another person will decide to be kinder to other people. One fresh start that is common is some people might start looking at finances and investing. This is a great goal, but it can be difficult to get into it – there’s so much information, some of it conflicting, some of it difficult to read. If you’re looking to invest in the gold market, you may worry that 2015 is not the right year to do so. It’s understandable to feel anxiety before making a financial decision. One way to settle your nerves is to gather as many facts as possible. What do economic experts think? What can we extrapolate from existing data? Have gold investments historically led to financial ruin for investors before? What does the next year hold for gold refining, investing, and the industry in general? As with all things, it’s impossible to tell with absolute certainty. However, experts can make some predictions as to what the next twelve months can bring. Here’s our look at the future, and we offer some advice to inexperienced investors who aren’t one hundred percent sure of how to succeed.
In order to understand the future, we have to look at the past. So, what did 2014 look like for the gold market? It was a tumultuous year, with shocking events dominating the hotlines and heartwarming moments on the televisions. The world was terrified of Ebola, Russia hosted the Olympics in Sochi, a civil war intensified in Syria, a royal wedding happened and a future King was born. More importantly, the economy began to change. The income gap continues to grow, meaning that the rich got richer and the poor got poorer. However, the stock market recovered and reached new heights, and more people found work after long periods of unemployment. Looking back at that description, you might think “Wow! What a crazy, volatile year!” And gold’s trajectory followed the same path, going up and down and down and up. The end results? Gold was very close to where it started at the beginning of the year.
Here’s the real question that is on every investor’s mind: what will gold look like in 2015? Let’s start with some constants that occur in the gold market nearly every year.
At the beginning of the New Year, prices generally begin to rise up. However, 2014 was especially shocking in the boost in gold prices. Why was the usual boost so extreme last year? Civil war in Syria and Russia’s invasion of Crimea boosted gold prices due to global unrest. This year, unless there are some similar events (let’s hope not!), gold should have a much less astonishing spike. However, you can still expect gold prices to rise.
March is a historically weak point for gold, with prices dipping around this time of year. The usual dip was aggravated this time of 2014 by interest rates. This year, you can expect the dip to be less extreme. The market should continue to lag behind other stocks through the spring, falling down (although not so severely that you should be worried). June is the last month where gold struggles, and from there we can transition into looking at the summer months.
During August, we can expect gold to make a big recovery. From August through to December, gold has several strong months. In fact, these months are when gold recovered from low costs during 2014. The end of the year is not a great time to invest for this reason. Patient investors will be waiting for spring to roll around and the usual slump to begin. Then is a great time to enter into the gold market.
So if you’re a new investor, you might have a better idea of how 2015 will shake out. However, there are a few extra tips that might help give you a leg up.
With the information above, you should be ready to make a more informed decision on whether you’re interested in investing in gold. If you’re ready to take the plunge, give EDI Refining a call at 1 866 688 3353, and we can answer your questions about buying and selling gold. With our mail-in program, fair prices, and great reputation, you can trust us to give you the best advice and guidance for buying and selling gold. Give us a call or check out our blog for more information and insightful pieces on the precious metals industry.