Figuring out where to invest your money is never easy. And gold/gold stocks have always ranked among some of the most capricious asset classes.

The year 2014 did not do much for gold either. With the geopolitical and economic turmoil plaguing the world, the spot prices for the yellow metal have hardly shifted. This remains so even as cautious investors seek safe-haven investments to keep their portfolio strengthened.

Speculation is rife, however, about gold getting back on track after the slump. Buying precious metalsmay just be the way to go in 2015. But skepticism is bound to find its way to this particular investment option as questions pertaining to the performance of the gold market this year abound.

Many investors continue to hold their faith in gold and are carrying on investing in it by buying the metal itself, gold mutual funds or through gold mining stocks to keep their portfolio protected from the effect of the plummeting dollar. And even when the dollar does get stronger –as it eventually will – holding on to it for the long term makes perfect sense.

So Does 2015 Look Good for Investing in Gold?

As per Swiss Bank reports, investors are buying more gold now as an alternative to Swiss franc cash deposits.

Countries like India and China are said to be hoarding up gold for a good reason. Around two years ago, India ranked the highest as far as the global gold consumption was concerned. However, it wasn’t long before China displaced India, thanks to the series of gold import restrictions in the latter’s case and the sudden surge in China’s demand for gold. Even though India may be getting back on track, China has been showing no signs of slowing down either.

India has always had a large appetite for gold, and because of the relaxation in the import restrictions, there could be an increase in the physical demand which could impact the world gold market.

The current election of the pro-business Indian leader has led to major stock market movements and gains, and the wealth hence garnered could boost investor sentiment and incentivize further gold buying among Indian investors.

Further, in case the Russian currency catastrophe spreads beyond its borders to cover more of Euroasia, then the impulsive move towards turning to gold as a safe haven could support the bullion prices going forward.

Gold May Not Have Lost Its Shine

If you’re looking to diversify your investment portfolio, including gold in it makes sense as it serves as assurance in the uncertain economy. Having some gold or silver staved off on the side can prove to be a sound decision in the case of major events like a war or a financial collapse.

Gold prices are witnessing a slump currently, which is why now may a great time to buy. However, with India and China battling it out for the top spot as gold consumers, it is expected to move up slightly, if not too much, this year. This could prove to be a golden opportunity for those looking for safe-have investments, especially for the long term.

Central banks are expected to continue buying gold and even speed up their buying in a bid to compete for a limited amount of gold, which may lead to a hike in the prices. This may apply to silver as well.

If you’re one of those people who think that deflation is a risk to your gold investment, then know this – while a deflationary situation may prove to be disastrous for the banking system, it can be perfect for gold. When banks break down, gold and silver tend to circulate the most as they become the most sought-after asset class.

The Gold Rush

In case you’re wondering what makes gold the most coveted metal of all, it is most likely due to its historical association with being used as money, and consequently as the basis for the gold standard, which sets the worth of money.

This is probably why gold feels like the safest metal of all and has been viewed as a means of achieving financial security, and a metal which will always retain its value.

In a world where most asset classes are highly interrelated, we have gold which doesn’t go up when other investments do. Neither does it have an inverse relationship with other asset classes like stocks have with bonds. Instead, gold investments are a reflection of several investor sentiments, which influences its movement and value.

The bottom line is that gold needs to be an important part of your investment portfolio as its price does elevate in accordance with events that cause the value of stocks and bonds to decline. Even if they don’t, it is an effective way to protect your investments in the long term. History is witness to the fact that through the years, gold has managed to serve as a hedge against inflation and the devaluation of major currencies. This makes it an attractive investment option and hence, always worth considering.

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