Will people come back to gold

[LeGaulois]

With the current economy, the fears about the Brexit, Italy, the Sino-American problems and the general pessimism among investors; It looks like Gold is coming back the past months. At the same time, countries like the EU, Japan & China are reducing their investments in the economy,
(it should also reduce demand for the USD?)

Even the Central banks are buying more Gold (+13% from the previous year). Economists predict a dark year for 2019 and it seems a lot of large funds are now buying Gold massively. Especially from Asia and Soviets.

[ATMD]

With the current economy, the fears about the Brexit, Italy, the Sino-American problems and the general pessimism among investors; It looks like Gold is coming back the past months. At the same time, countries like the EU, Japan & China are reducing their investments in the economy,
(it should also reduce demand for the USD?)

Even the Central banks are buying more Gold (+13% from the previous year). Economists predict a dark year for 2019 and it seems a lot of large funds are now buying Gold massively. Especially from Asia and Soviets.

Gold, silver, land, these are investments for people with little appetite for risk. Crypto is a high risk/high return investment, for a different type of people in my opinion.

[The Sceptical Chymist]

Well gold is up $41/Oz since last I checked it about a month ago, so there does appear to be a little bullish sentiment in the air.  I'm not sure if that's going to be a long-term trend or not, but the precious metals market has been pretty damn dead for years now, since gold & silver peaked in 2011.

I don't follow politics--global or even local politics, and I barely follow what's happening with the economy outside the stock market.  I don't even know what "Sino-American problems" means, and I'm not sure how much the brexit thing is going to affect the global economy.  It'll be interesting to see.  

If the stock market starts to fall--and I don't mean just a correction but a bear market that lasts a year or longer, and if interest rates start to rise--then we'll probably see people starting to move money into precious metals again.  Gold has been beaten down quite a bit for years, so it might not be a bad time to buy a little.  I wouldn't count on making a big profit, though.  I don't expect the metals market to start approaching 2011 levels again anytime soon, and if you over-buy gold or silver, you'll probably be sitting on an investment that doesn't do much for you.  

I still haven't lost faith in the stock market or in crypto.  Those are the areas where I'd put my money.

Gold, silver, land,

Oh yeah, I always forget about real estate as an investment.  That might not be a horrible idea right now, either.

[mwaqar17]

I don't know exactly about the other regions but from ASIA you cannot take gold away. They are crazy about gold and they are ready to invest in gold any time. I think this year investors are more interested in Gold as compared to crypto currency. Now Let's wait for the mid January to have an idea of BTC price.

[Reid]

Per government that would be the idea.
But what will it be per individual?

There goes the million dollar question.
I see a lot of rich people are still buying the USD instead of letting it rot in their own currency just so they could feel the spike when their countries currency are in a bad state. Also to keep them safe from an economic breakdown.

If I am to ask I would go the gold way. But that is before I knew crypto currencies.
My wife though is still into gold. 

[Juggy777]

With the current economy, the fears about the Brexit, Italy, the Sino-American problems and the general pessimism among investors; It looks like Gold is coming back the past months. At the same time, countries like the EU, Japan & China are reducing their investments in the economy,
(it should also reduce demand for the USD?)

Even the Central banks are buying more Gold (+13% from the previous year). Economists predict a dark year for 2019 and it seems a lot of large funds are now buying Gold massively. Especially from Asia and Soviets.

I believe Brexit issues are more bigger than we all thought, and if their Prime Minister is ousted it could lead to worsening of global economy. While there's a 90 day truce between China and America it's to early to say if things will get better between the two nations. I believe Asians countries have always brought gold irrespective of the global scenario, but now they'll further purchase it to be on safe side due to the current global economy scenario.

[1Referee]

If I am to ask I would go the gold way. But that is before I knew crypto currencies.
My wife though is still into gold. 

I'm bullish on Bitcoin all the way through, but have to admit that Bitcoin in general terms is still a high risk asset, especially amongst traditional investors and average joes. In other words, your wife is likely to do better going for Gold in the short term. Gold has had thousands of years to gain trust, while Bitcoin is the new kid on the block. It will take time for Bitcoin to become a safe haven asset, but I'm confident that it will happen.

Storing physical Gold is doable in smaller amounts, but a total disaster when it concerns so much Gold, that you have to buy a massive vault or have your bank store it for you. Storing large amounts of Gold in a vault yourself comes with the obvious risks of thefts and whatnot, and letting your bank store your Gold for you means you don't actually own it anymore.

Bitcoin for average joes can be stored conveniently in a hardware wallet. Even if someone takes it from you, they still can't do anything with it as long as you have your recovery seed hidden in a place only you can find.

[kryptqnick]

Even the Central banks are buying more Gold (+13% from the previous year). Economists predict a dark year for 2019 and it seems a lot of large funds are now buying Gold massively. Especially from Asia and Soviets.

There is not enough gold in the world to back up all of the money. People can still value it, but I doubt they can use it like the US did. What could be done instead is using cryptocurrencies after dollar collapses, because they are naturally limited and don't need any kind of backing up. Well, a weird but not impossible thing would be to back up fiat by cryptocurrencies. I guess this would be the situation gold and dollar used to be in. It's not such a bad idea in case people come to value cryptocurrencies themselves. Fiat was a bad idea, and something has to replace it. The crash is probably inevitable...

[aad140386]

You are completely right in your observation. Many countries do increase gold purchases. First of all, this is due to the growing tension in the world. Economic wars, military tensions between the United States and Russia are forcing many countries to increase their gold reserves. The USA constantly threatens with sanctions to different countries, and in trying to secure their economies, the central banks of different countries are increasing the purchase of gold. But I do not think that countries will move to the gold standard. I am afraid that the gold standard system has already exhausted itself.

[Harlot]

Gold may have look like it recovered by rising from 1175$ last August to 1238$ today but I don't think it is clear that it is on its way up. Right now we are seeing that Gold is rising up and I doubt it is a good time to ride with it without you starting to pile up when it was on its bottom. Gold is maybe rising up because they are seeing other countries as well as the central banks buying it without even having the idea why it is rising on this bear market overall, this might just be a short term play just like what we are seeing when a coin is pumping up, I just doubt they are preparing to pile up Gold in preparation or this "dark year"

[LeGaulois]

Even the Central banks are buying more Gold (+13% from the previous year). Economists predict a dark year for 2019 and it seems a lot of large funds are now buying Gold massively. Especially from Asia and Soviets.

There is not enough gold in the world to back up all of the money. People can still value it, but I doubt they can use it like the US did. What could be done instead is using cryptocurrencies after dollar collapses, because they are naturally limited and don't need any kind of backing up. Well, a weird but not impossible thing would be to back up fiat by cryptocurrencies. I guess this would be the situation gold and dollar used to be in. It's not such a bad idea in case people come to value cryptocurrencies themselves. Fiat was a bad idea, and something has to replace it. The crash is probably inevitable...

But the US Dollar isn't backed by Gold since years. And if Central Banks are massively buying gold it can be because they do know the USD will deflate a lot soon (GBP too anyway) (hence also the very bad stock market this autumn?) so they are avoiding the USD deflation or to "save" funds and once again gold is showing its power when it's about "saving" funds.

[tenebriscaelum]

Well the only reason for that is because its valuable since way back when our ancestors started trading and up until now its value almost hasn't gone down but instead have risen up specially with the current market prices in the market of cryptocurrency which dips dow really hard the last few months of this year.

[LeGaulois]

Storing physical Gold is doable in smaller amounts, but a total disaster when it concerns so much Gold, that you have to buy a massive vault or have your bank store it for you. Storing large amounts of Gold in a vault yourself comes with the obvious risks of thefts and whatnot, and letting your bank store your Gold for you means you don't actually own it anymore.

Bitcoin for average joes can be stored conveniently in a hardware wallet. Even if someone takes it from you, they still can't do anything with it as long as you have your recovery seed hidden in a place only you can find.

Not worth to store Gold under the bed, it was maybe good at the time of our grandparents or during wars but in 2018 there are many disadvantages
- higher insurance price for your house
- a robbery, anything can happen but the golden rule is never to tell anyone that you store gold at home.
- you lose value when you resell
- you will get a lower ROI: the fees to buy, delivering, etc are more costs to add.

There are better alternatives and cheaper :p

[RodeoX]

Gold does traditionally run counter-market. It goes up when the other markets are in turmoil. However it has no gone up as much as I would have expected recently. I have no idea why.
 

[1Referee]

Gold does traditionally run counter-market. It goes up when the other markets are in turmoil. However it has no gone up as much as I would have expected recently. I have no idea why.
 

Well, as you said, it tends to do the opposite of what the regular markets do, and these regular markets have been an exceptional performer in the last years, and they are still doing well despite the first signs of a wide field correction. I don't really see much reason for Gold to increase much more than it already did.

The volumes the stock market is generating after each dip indicate that there is no real fear of a total market collapse. They definitely know what buy the dip is. Gold is a great indicator of fear, and as long as the price is relatively boring, which it is despite its recent upswing, you know that money isn't looking for a safe haven, yet.

[yohaneshs]

I think some investors will chosen gold because it a safe haven when market crash. Gold is a good instrument.

[Thirdspace]

gold will always have its place in an investment portfolio of a good investor
sometimes gold loses its value in short term, but in the long run its value always increase
diversification is always recommended in investment practices,
so neglecting gold is like not using an option in diversification, hence reducing hedging power

[STT]

Sell some BTC, buy a little gold which is what I've been doing even at prices below this.   Everyone globally switching out of BTC I believe will still end up 'needing' some kind of alternate to US dollar going forward anyway.    In the west we are kinda blind to why that is, USA is a close cousin to many of the top 10 countries but it probably gets increasingly obvious the further away some countries are especially those without any link to dollar, under sanctions or capital controls.    BTC still has a purpose to play in linking the world better, more efficiently and on a base level compatible to capitalism not elitism

Some percentage will come back to crypto and we'll repeat some accumulation, how or what timescale that occurs on I dont know or pricing till it settles.   I dont think that basic demand and search for something beyond the status quo is over.   I would also doubt gold is going to be popular or as popular because its just not as easily swappable, its really way more boring/long term.  [Gold peaked 2011 and its still finding where its bottom pricing is, balancing supply and demand.    It will also find a new high, eventually.  A rough timescale to 'weigh' gold up would be a decade]  In the 1980's the demand to use pawn shops for gold meant queues a thousand people long some places so I'm told anyway

   tl;dr story isnt over but it might be we approach the end of the start

Gold does traditionally run counter-market. It goes up when the other markets are in turmoil. However it has no gone up as much as I would have expected recently. I have no idea why.
 

Its a function of volatility.    We can put a fire out with fuel if enough is swamped on top, it'll blow up later probably but effects can be counter-intuitive.   The reaction to proposed trade tariffs that will hurt USA one of the worlds largest importers, is the market buys US dollar.    Thats nonsensical but its also cause and effect short term at least

[mu_enrico]

Yeah, people use gold as a hedge, especially in the extreme fiat volatility. I think the recent political situation with Brexit and the fud of stock market crash lead people to buy more gold. Many "experts" predict that in 2019 stock market will crash because it has been highly overvalued. Perhaps 2019 will be a "hedge year," not an "investment year."

I think it's interesting also for bitcoin, is bitcoin also considered as a means of hedging? We will see in its price movement.

[BitHodler]

Even the Central banks are buying more Gold (+13% from the previous year). Economists predict a dark year for 2019 and it seems a lot of large funds are now buying Gold massively. Especially from Asia and Soviets.

They must be buying OTC gold then, because the market as it is doesn't reflect the huge buyers interest that seems to be suggested here. It's entirely possible like what happens with Bitcoin, but I doubt it at this stage.

Governments are mostly the first to notice that their economies will very likely perform poorly in the coming years, and would start accumulating as much gold as possible to hedge potential risk of devaluation asap.

We haven't yet seen the global economy go full bear to see what its effect is on Bitcoin at current stage. I guess the odds are high that it works against Bitcoin rather than for it, but I will applaud being proven wrong if so.