The start of a new year is a time to evaluate your goals for the future. A critical aspect of setting new financial goals is reviewing the previous year and evaluating the possible concerns that may arise throughout the coming year. By clarifying the factors that may impact precious metals, it is possible to estimate potential advantages and disadvantages in the market. U.S. Money Reserve, America’s Gold Authority®, regularly develops and releases online guides to help you meet your financial goals.
Increasing Precious Metals Prices in 2019
Reviewing the previous year is a key part of evaluating the current trends for precious metals. 2019 was great for gold and other precious metals. Why did the price of gold increase by 18 percent and the price of palladium by 60 percent? Precious metals have been rallying in the market for a variety of reasons.
A key factor that contributed to the price increase of precious metals in 2019 was growing political uncertainty. Additionally, trade wars with other nations, particularly China, caused concerns about the future. Typically, in times of political or economic turmoil, people flock to precious metals like gold because they are safe-haven assets that tend to perform reliably in the face of uncertain global conditions.
In addition to factors associated with political and economic concerns, another influential issue was China passing laws to regulate car manufacturing in an effort to reduce pollution in the country. Palladium is a necessary component for catalytic converters, so the supply of the precious metal was stressed as the demand for it increased in China.
Because of a variety of factors, the price of precious metals rose in 2019. The year ended on a positive note with precious metals reaching record highs. While it is not yet clear how precious metals will perform in 2020, many of the factors present in 2019 may continue to have an impact on the price of precious metals in the coming year.
Factors Impacting Expectations for 2020
Expectations for precious metals in 2020 are primarily positive. Because some factors may change over the course of the year, it is important to evaluate the potential risks and concerns that may contribute to changes in the market conditions for precious metals.
A critical factor in the upcoming year will be the presidential election. The uncertainty caused by the election may contribute to a change in market conditions for precious metals. The outcome of the election may result in changes to the economy.
There is also the distinct possibility of a recession in the near future. The U.S. has nearly 22 trillion dollars of debt, and large corporations have more debt than they have had in years. The high debt rates contribute to the risk of a possible recession.
Besides concerns about politics and the economy, changes to tax laws may also impact the price of precious metals. The state of Texas approved a tax exemption (from property taxes) for precious metals. As more states offer an exemption for precious metals, the prices of these metals may be affected.
Precious Metals Predictions
Thus, expectations for precious metals in 2020 are positive. The upcoming year may be tumultuous because of the high levels of debt, elections for both the president and congressional representatives, continuing trade wars, and political polarization. As a consequence of the uncertainty of the country’s economic situation and the global economy, concerns about a recession are on the rise.
These concerns about the economy may result in a positive shift for precious metals. Prices may rise even more in 2020 as concerns about the future become more prominent. Buying precious metals like gold is a great way to diversify your portfolio and working with U.S. Money Reserve is an excellent option to help you achieve your financial goals this year.
About U.S. Money Reserve
U.S. Money Reserve is a leading distributor of government-issued coins in the United States. As a company, U.S. Money Reserve strives to provide customers with the highest level of service. The team helps clients find the right precious metals to diversify and bolster their portfolios. For more details about becoming a holder of precious metals, contact the company today