{"id":1180,"date":"2017-01-24T13:34:23","date_gmt":"2017-01-24T19:34:23","guid":{"rendered":"http:\/\/gpswp.com\/apwealthmanagement\/?p=1180"},"modified":"2017-01-24T13:34:23","modified_gmt":"2017-01-24T19:34:23","slug":"precious-metals-consideration","status":"publish","type":"post","link":"https:\/\/gpswp.com\/apwealthmanagement\/precious-metals-consideration\/","title":{"rendered":"Precious Metals – For Your Consideration"},"content":{"rendered":"
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Precious Metals – For Your Consideration<\/h3>\n

January 23, 2017 | Print View<\/a><\/p>\n

Precious Metals were among the best performing asset classes in 2016 following three years of underperformance. Why would we be interested in precious metals at this juncture? Over long periods of time different assets perform differently under varying market and economic conditions.<\/p>\n

Each of the four primary precious metals — gold, silver, platinum and palladium — has its own key drivers of supply and demand. No one metal continuously leads the others and each can be volatile alone, so a basket of all four precious metals is preferred to owning just one. In this analysis, we will address our outlook for the price of each.<\/p>\n

Gold <\/b>is the most widely traded of the precious metals and is considered a store of value in periods of weakening local currencies, rising inflation, increased market volatility and black swan events (i.e., BREXIT, perhaps spring ’17 elections in France, fall ’17 elections in Germany). Rising interest rates will work against the price of gold IF they are increasing in real terms, that is, after taking into account the rate of inflation.<\/p>\n

Alternatively, the rising U.S. dollar versus other currencies following Trump\u2019s election pressured the price of gold in the final weeks of 2016. The thinking was that rising tariffs and other protectionist moves under our new president would erode overseas growth going forward. In an increasingly interconnected global economy, we believe this is less likely than the rhetoric to date would indicate. In fact, gold has been one of the best performing assets at the start of 2017, up by 5 percent, on top of a 9 percent gain for all of last year.<\/p>\n

On the supply side, gold mine production is expected to rise very slightly this year to peak levels* before dropping in the coming years as miners continue to cut investments. We believe investor demand will rise in a year of:\n<\/p>\n