The world financial market is facing instability and turbulence which has resulted in people seeking other means of protecting their assets which involve buying gold coins. Gold has a proven history of stability and maintaining its market value in times of financial security. The US money reserve released a recent forecast on the balance of the dollar and that of the gold.
Even after the economy survived the 2008 crisis, economists are worried that we are headed to hard recession times. The prediction at the moment, however, might seem as being unintuitive since the economic performance in 2018 was not badly off.
The year witnessed an increase in stock prices, an increase in house prices and consumers spending as well as rising in GDP. Economists fear that there might be signs of recession such as an increase in the levels of household debt, tensions surrounding matters of trade drop in stock prices and stagnation of home sales. The gold prices however in the previous year was quite eventful. Learn more about US Money Reserve: https://www.usmoneyreserve.com/why-buy-gold/ and https://www.glassdoor.com/Reviews/U-S-Money-Reserve-Reviews-E784519.htm
Volatility might arise due to political instability, financial instability, and trade. Members of Wall Street and Capitol Hill has started seeking to increase the level of risk resistance by acquiring gold to protect their assets.
One risk factor that is projected to contribute to the concerns of a stagnating economy is the amount of debt taken which is approximately $1 trillion in deficit and $22 trillion in total debt in the marketplace. From past economic records, it can be noted that high debts and deficits within an economy might severely affect the economy. Increase in interest rates reduces the rate of buying by citizens as it increases the cost of borrowing by firms. Read more: US Money Reserve | Manta and US Money Reserve | PR Newswire
The importance of interest rates
The central government plays a ver important role in economic growth; this is through lowering of the interest rates to enable businesses to borrow money. The Federal Reserve, however, has hesitated to keep the prices low for a long time after the last recession as it fears that it could lose the ability to low the interest rates lower in case of future recession hits the economy.
The Federal Reserve took upon itself to increase the interest rates in 2015, and since then the prices have been increasing, and the Fed still projects to improve the interest rates in 2019.
According to the perception of the economist increase in interest rates would be an indicator of a creeping recession. The rate has direct effects on different factors in an economy such as mortgage interest rates, loans, borrowing and repaying of debt.
As the financial market is predicted to go through hard times, it would be wise to invest in gold which is more stable than the dollar to save the market value of your assets.
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