Long considered one of our most reliable investments, the price of gold rises and falls faster than any share price. Many cashed their gold in and amassed a fortune when the price shot up a couple of years ago. When it dropped again people once again heavily invested in it. So whether you are looking to invest in the gold market, wondering how the value of your current haul will fare or wondering if its worth cashing in, we have looked at what the experts predict will happen to the price of gold in 2015.
The biggest movement happened only last week. The crisis talks involving the bailout of Greece saw the price of gold start to climb again on Wednesday February 25th. Only the day before when the problems in Greece had again made world headlines the price had fallen below $1200 per ounce. The rise is attributed to the talks reducing the demand for hedge investments against the country’s economic turmoil.
In January when the UBU and the LBMA issued their forecasts they both predicted that the price of gold would remain relatively flat during 2015. The LBMA, London Bullion Market Association, expected gold prices to remain at an average of $1211 per ounce, with the trading range falling in between $1085 – $1356 over the year. The average differed between forecasters. The lowest came from Credit Agricole who predicted an average of $950. The highest came from Sharps Pixley with $1321.
The USB lowered their 2015 gold price forecast citing the low oil price as its main reason. Their prediction doesn’t leave much leeway as they reckon it will average out at $1190 – $1200. Of course nobody can make true predictions as oftentimes things rear their ugly heads which nobody considered. Nobody expected Greece to return to the headlines in February so all predictions shouldn’t be taken as cast in stone.
The HSBC raised its 2014 gold price prediction in January 2015 from an average of $1175 to $1235. They backed this up by citing that geopolitical fears and the strong dollar would boost the status of gold as a safe haven for investors. Their optimism has been slammed by some but then again it really is just falling in line with all the other predictions so, you know. It’s not as if they are the only one who has raised their gold prediction either. Normura also raised their year on year forecast from $1200 to $1460 per ounce.
In short, no massive peaks or troughs are expected over the rest of the year. Those looking to invest in gold in 2015 should look on it as a long term investment not a way of making a quick buck. If you had been hoping to offload some gold this year then your best best is to hang onto to it for a bit longer. Then again, if you’ve had it a long time and got your gold when it was cheap then you could probably make yourself a tidy profit if it hit $1300 this year.
As we saw last week the price of gold can change daily so keeping an eye on it is vital wherever you stand investment wise. Predictions are exactly that. Nobody actually knows where gold will go in 2015. If the price should suddenly plummet then buy, buy, buy. If it rockets sell, sell, sell.
