Karatbars CEO Comments On Recent Price Surge Of Gold
The CEO and founder of Karatbars International GmbH, Harald Seiz, is a seasoned and well-learned gold investor. He is known to be a very pragmatic gold investor. His love for gold is what led him to found Karatbars, a company that aims to disrupt the current financial system and to restore gold’s original value as a form of payment and as an advantageous investment.
Recently, gold saw a massive surge in its price, reaching a seven-year-high. And even before hitting that target, the price of gold in recent times has been nothing short of impressive and has got a whole lot of people talking.
Many people are already wondering if gold will continue this amazing run, and some wonder just how high it can go.
Harald Seiz, on the other hand, claims that he is not surprised at all that gold has done so well recently. He says that such behavior is to be expected from the yellow precious metal, as there is currently a lot going on around the world that works in favor of the prized commodity.
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He further claims that he expects this trend to continue for the foreseeable future for various reasons.
Karatbars CEO, Harald Seiz, on the recent appreciation gold has experienced
The man behind Karatbars recently commented on the current increase in gold prices. Seiz gave a detailed analysis as to why this is happening, while also stressing that this increase in the price of gold should be expected and not deemed strange, given the current situation the world is in.
Firstly, he commented on the concerns surrounding the U.S.-China trade war, saying that the tensions between both countries have been the primary driver of the gold price recently, and the price is expected to be affected if the tensions come to an end.
Seiz cited that the price of gold remained flat when the president of the United States, Donald Trump, announced the phase one deal with China, but it is looking very likely that both markets are coming to the realization that a trade deal will not be signed.
He then went ahead to cite the forthcoming presidential election in the United States as another reason why gold is enjoying its current rise, saying that it is a well-known fact that gold is valued against the U.S. dollar.
According to him, the forthcoming election is having a negative effect on the economy of the country, as there are already so many uncertainties, and investors are already converting their fiat currency to gold to preserve its value. This is having a positive impact on the price of gold.
Harald Seiz further added that the current economy of the United States is very weak, as consumer spending, which accounts for about 70 percent of the country’s economy, is debt-driven.
He further stated that the economy of the country is standing on quicksand, with the manufacturing sector already weakening. The orders for durable goods already sank by 2 percent in November.
He concluded that the economy is likely to go into recession, and gold is thriving off of it already.
Harald Seiz says that it is hard not to acknowledge that the current increase in the price of gold is connected to the outbreak of the Coronavirus (COVID-19). He said that this virus is already causing a lot of mayhem around the world.
It has already spread past China and into many other countries across the various continents. There has been a massive increase in the number of registered cases, and economic unrest is huge as this always feeds the price of gold.
Seiz also claims that the recent increase in bond yield and interest rates are definitely one of the reasons why gold is increasing in price. He claimed that after a period where the world saw a crazy monetary policy being implemented by the central banks, inflation is now on the rise.
It is well known that inflation affects the purchasing power of fiat currencies, and gold is very much sought after in such times because citizens and investors want to protect the value of their money. Gold is, after all, a hedge against inflation.
Harald Seiz says that these are some of the reasons for the recent surge in the price of gold. He went on to say that, if some of these problems will not be solved in the near future, gold will continue to enjoy its rise in value.