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Stock Market Today: The Fall in Gold and the ETF Outlook for 2019

Stock Market Today: The Fall in Gold and the ETF Outlook for 2019

Gold has always been considered as the prince of safe haven goods and one of the best safe investments regardless of market trends, a reputation that now precedes this very rare material on every occasion but which must be contextualized as always in order to hope for maximum profit. So investing in gold today is really worthwhile, and if so how? To answer this question, first of all, we need to analyze the gold sector at this particular moment in history: 2017 was meanwhile a year financially speaking characterized by an oppressive climate of uncertainty that made its effects felt on all major world business centers, but despite this there were some asset classes that managed to emerge strengthened despite the prevailing crisis and the threat of nuclear war. Indeed, it is precisely these factors that have been among the main causes of the gold fever that seems to have infected savers, traders and investors all over the world since the beginning of the year.

Raw materials, protagonists on the financial markets today

In fact, as already mentioned, commodities are among the most atypical and exclusive categories of existing solid investments, as they are physical goods with a very high intrinsic value able to keep that value high even and especially during times of war and crisis. For this reason it can be said that given the constant climate of tension in the financial markets, it is natural for traders to try to use types of investments that are safe but at the same time as profitable as possible. All commodities in this sense can be said to be suitable for the purpose, but without a doubt the blond metal is an asset of absolute prestige that can overshadow even fearsome colleagues such as diamonds or oil. However, we have already talked extensively about the advantages of this precious material, on which we will not dwell here, but it is important to emphasize that 2017 has seen an exponential growth in this asset class, and this is a trend that experts believe could last for several years. Excellent prospects for the medium and long term therefore, but despite this the positions on ETFs relating to the purest of metals continue to remain relatively poor.

ETFs gold, invest safely today in commodities

This is because in recent years ETFs have been mainly directed towards the bond and equity markets, inevitably leaving room for a decline in positions on gold ETFs. While in 2012 they accounted for about 8% of existing ETFs, the same percentage is now close to 2%, a very positive figure in a financial world now characterized by high liquidity and exaggerated valuations. However, this does not mean that gold is declining in the markets: in 2016, positions grew by more than 30%, while so far they have grown by 10% in 2017, and it is on this basis that experts now say that gold ETFs will easily grow significantly faster in the coming months than their past performance and other financial instruments. At the moment, however, the blond metal, despite the reputation of safe investment, has been the protagonist in recent days of a widespread decline in the markets from 1,107.46 euros per ounce to the current 1,088.60, a temporary collapse due to various factors in international geopolitical as well as purely economic reasons that should not discourage traders and savers.

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