The weakness of the dollar and inflation are some of the factors that are likely to drive precious metal prices, David Lennox told CNBC's Street Signs Asia on Monday. Lennox said it looks like everything is ready for the US dollar to fall, although that hasn't happened yet. If the dollar weakens, it would be a boon for gold, he added. Geopolitical tensions between major military powers could also cause gold prices to rise sooner than expected, Lennox said.
With this in mind, many investors are turning to gold IRA rollovers as a way to protect their retirement savings. A Gold IRA rollover review can help investors understand the benefits and risks associated with this type of investment. In particular, Russia's military presence along its border with Ukraine has been accumulating, and that is a central point where it could quickly turn into something disastrous, he said. Do you have any confidential news? We want to hear from you. Get this in your inbox and learn more about our products and services.
By keeping cash on the sidelines or buying gold now, an investor basically claims that investing in gold is a better use of capital than a different asset. Both ETFs are at 52-week lows and are intended to track the price of gold by keeping physical gold insured in a trust. While it may be tempting to buy shares in a gold mining company that has fallen even further from its peak, the simplest and safest way to buy gold is to opt for an exchange-traded fund (ETF), such as the SPDR Gold Shares ETF (GLD -0.15%) or the iShares Gold Trust (0.64% of the IAU). The SPDR Gold Shares ETF has an expense ratio of only 0.4%, and the iShares Gold Trust offers an even lower spending ratio of 0.25%, which is a much better and more liquid alternative to buying physical gold bars and paying a substantial premium over cash.
Gold is the metal we'll turn to when other forms of currency don't work, which means that gold will always have value in difficult and good times. Gold can stimulate a subjective personal experience, but it can also be objectified if adopted as an exchange system. However, over the past four months, gold fell by 18% from that peak, meaning that gold is almost in a bear market at a time when it should maintain its value.