Price of gold for 1g: 71.1238 € (0%)    Price of silver for 1g: 0.9105 € (0%)   Price update for 5:00

The Certainty of Gold

It can be hard as an investor to choose where to put your money, there are far more options and opportunities than ever before, whether the market is established, like oil, or only a few years old, as is the case for NFTs but every investment carries a risk. It is important to understand these risks and think about what you want from your investment, a quick return, a high risk gamble or stability and security.

2023 has been a year of upheaval and change, with global conflicts, inflation and regulations all having an effect on investments. Historically gold performs well during times like these, when there is uncertainty people want stability and security. Other investments are not so well insulated, values can quickly change, and in some cases be completely wiped out.

 

Oil

2023 oil prices have not been as high as in previous years despite China purchasing larger than normal amounts as they look to rebuild their stockpile. If China decides to import less oil in the coming months this could affect global demand and prices. Conflicts around the world can have an effect on oil supply lines that have previously created a spike in oil prices before an equally sharp drop. In June 2022 the price of oil peaked at just over 118 dollars a barrel, but it has not come close to that figure since.

 

 

Crypto

Other potential investments, such as crypto currencies, continue to fluctuate and cannot currently offer long term security. Regulation is slowly catching up the the crypto market in the US and this coupled with the high profile case of Sam Bankman-Fried may spell the end of many freedoms companies like Ripple, or traders of Ethereum and Bitcoin currently have. For example XRP is currently embroiled in a long term court case with the SEC, the future of XRP is not reliant on this one court case but the price is likely to be greatly affected by the outcome and, if the case becomes more drawn out, could become more costly as well as generating negative press for XRP and other crypto currencies.

 

 

NFTs

Recently, the bubble seems to have burst for the nascent NFT market, with many investors cutting their losses on their non-fungible tokens as the market trading volume is down 89% from 2022. Some investors remain confident that NFTs will recover some of their value but the market will probably stabilise at a lower level than it is currently.

 

 

Source: LBMA /The price of gold in EUR since 2000

Gold

Gold prices have shown steady growth in 2023 with 2024 expected by many analysts to continue this trend. Gold has proven over the centuries to be one of the few consistent investments in the world. Central banks bought almost 340 metric tons of gold in the third quarter of the year, while investors in Japan and China this last have been buying record amounts.

 

Owen Johnston, Business Analyst

 

Sources:

https://www.forbes.com/uk/advisor/investing/gold-price-10-11-23/

https://www.dailyfx.com/news/oil-price-forecast-wti-remains-vulnerable-below-the-100-day-ma-20231106.html

https://www.statista.com/statistics/806453/price-of-ethereum/

https://www.techopedia.com/cryptocurrency/xrp-price-prediction

https://www.bbc.com/news/business-67295786

https://www.theguardian.com/business/2023/oct/18/israel-hamas-war-oil-prices-global-economy

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