BISMARCK, N.D. (KFYR) – Gold has hit a new record high, now trading at over $2,500 per troy ounce, a nearly 30% increase year over year.
Rising prices signify investors are expecting interest rate cuts in the near future, which makes them bullish on gold.
Our nation’s rapidly rising debt, which has reached $35 trillion, and the decreasing value of the U.S. dollar have everyday and commercial buyers reaching for investments that stand the test of time.
“I think that the dollar could have some real trouble because these foreign banks may not want to take it anymore unless there is some guarantee this money is going to hold its value. And right now, the dollar is in serious trouble, in my opinion,” said Larry Schneider, owner of Bismarck Gold & Silver Exchange.
Schneider’s opinion may be right, as Reuters reported that central banks in China and other foreign countries have been buying up gold to diversify away from their reliance on the U.S. dollar.
The upcoming election could also affect gold rates.
“I think it all depends on the election. I think the administration that we have in power right now— I think they’re going to continue to spend money. They have some far-reaching plans, and it’s going to take trillions of dollars to carry out their plans,” said Schneider.
Schneider expects gold prices will continue rising and may reach $3,000 per ounce in the next six to 24 months.
He also expects silver prices to continue rising.
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