Why you should BUY GOLD NOW
By StoneX Bullion
In response to the growing political tension last week we saw 2 of the most reliable safe-haven assets soar. This demand comes when investors feel anxious and we saw the yellow metal jump by 4.9% (£+46.94/oz t) to a near three-month high in the last seven days.With the rising political tension showing no signs of slowing gold could see itself having a sustained bull market in 2017. Here are some of the reasons to buy gold right now…
1) President Trump and his trade war with ChinaDonald Trump throughout his election campaign pointed to China as one of the USA's major problems to finding prosperity. President Trump is claiming that its currency policy with China is an on going threat to the success of the American economy. Now Trump is elected he looks unlikely to backtrack on his promise to force a strong tariffs on imports from China. This pledge is highly likely to lead to a trade war between the two nations. This poses a huge threat to the global stability which will increase gold's appeal as an investment option.
2) BrexitThanks to the result of the Brexit referendum in June requests for gold hit a four-year high. When Britain's made the decision to leave the European Union we immediately saw the pound plummet and demand for gold soar. This decision will damage both Britain and the EU politically and economically. With more changes to come the uncertainty caused by the referendum the demand for gold is likely to continue.
3) Political scandal in France is extending the far-rights movement ahead of April's electionAfter 2016 political events, it would not be surprising to see Marine Le Pen follow suit in April’s French election. Recent scandals involving politicians Nicolas Sarkozy and Francois Fillon will have increased France's distrust with mainstream politics, leaving the upcoming election to two underdogs, Marine Le Pen and Emmanuel Macron. With Le Pen's promise to get rid of the euro and follow the UKs decisions to hold a referendum on their membership of the EU this could deeply threaten the political and economic stability of Europe.
4) Trump's hostility towards Iran triggers their missile testingHis decision to undo the growing relationship between USA and Iran via sanctions has resulted in Iran testing missiles and performing military exercises. The Iranian military have called this a direct response to the threats that the USA are proposing.
5) Dutch election favourites Eurosceptic Geert WildersThe populist revolution continues in Europe with the Eurosceptic Geert Wilders. Could the EU’s days be numbered? His win would continue the global success of anti-globalist movements to mainland Europe. This would again cause global financial uncertainty and could see investor putting there money in the safe-haven that gold offers.