Worldwide Currency Devaluation Will Make Gold Buying Worthwhile

There are several reasons why gold buying continues to be an excellent move for investors big and small. The fact that several world economies are facing a crisis with their devaluing currencies is one of the biggest factors that will support a gold price hike in the near future. In fact there are many analysts who believe that falling currency values will shore up gold prices quickly which has set the stage for some volatility in the gold market right now.

The Currency Scenario in Japan

Japan’s woes are perhaps getting a most publicity right about now thanks to the LDP party leader’s call for drastic action in this regard. Shinzo Abe has asked the Bank of Japan to print money without limit until the deflationary forces can be overcome. The leader has gone so far as to say that strong currency is the biggest ‘impediment’ to the economic recovery of the island nation.

The Conflicts in the Middle East

World economies are also facing the brunt of the continuing conflicts in the Middle East. The escalating tension in this part of the world, the rising death toll and the political uncertainty are keeping world leaders on the tenterhooks for now. With Israel appearing to be gearing up for a war with Iran there is enough reason to believe that across the globe, economies will remain under pressure for a while until some resolution comes about.

This kind of pressure is usually a perfect setting for a hike in gold prices that comes on the heels of falling currency values. For investors this is an ideal setting for buying gold coins or gold bullion before the price rise makes it unaffordable.

QE 4 in the U.S.

The U.S may fare no better than its beleaguered European cousins if Fed Chairman Bernanke’s move to deploy money printing comes to pass. The move comes on the heels of a surge in jobless claims and the fact that the economy of the nation is still teetering precariously. With some analysts predicting a double dip recession, the Fed appearing to be determined to flood the economy with new money and investors continuing to lose faith in cash, gold bullion is sure to be in demand. Those who invest in gold before the currency devaluations boost prices will surely have enough to cheer about in the coming months.