Gold investors witnessed a fall in prices of the metal since the beginning of Covid-19. However, gold prices weren’t as severely affected as stocks, equity funds, and other paper-based investment forms. The news about the roll-out of vaccines caused the prices of gold to fall even more, but they are expected to peak again as per forecasts by experts.
Financial experts like goldstackers.com.au assert that gold prices will rise again as the economy starts attaining a new equilibrium regarding market stability, inflation rates, and trade conditions. A close analysis of the history of gold prices over the years shows us that gold rarely sees price drops.
The World Gold Council reports that the price of gold has increased by 40% since 2019. If you plan to buy gold now while the prices are relatively low, you could refer to trusted sellers.
Table of Contents
Safe Investment Option
In 2020, the economy bore a global pandemic, rising tensions between nations and high inflation rates. Investing in a precious metal like gold would be wise since they are the safest option in the face of uncertainty. Equity units are highly vulnerable to market rate fluctuations and are based almost purely on market conditions. On the other hand, metals have an intrinsic value that isn’t entirely dependent on market conditions.
Rising Tension between Nations
Political forecasts show possibilities for rising tension between specific nations. When there is a global political crisis, the markets are likely to be affected. Choosing to invest in the yellow metal will ensure at least a basic level of safety.
The tensions between countries are expected to get worse in 2021. If the global market stagnates due to rising political tensions, the prices of gold are expected to surge further. If you are a prospective investor, it may be a good idea to invest now.
Is Gold a Good Investment in 2021?
While gold is not a high-yielding investment, it is a stable investment option. Investing in bonds, shares, and the best stocks will yield high dividends. However, minor market changes have a significant impact on the price of securities and bonds.
Studies show that gold performs well in uncertain market environments. Investors fall into panic and chase safer investment options. While the price of gold is relatively lower now, it is expected to rise in the coming years. Growth charts already show positive rises in the price of gold.
The political uncertainty in the US due to the presidential elections, hostility being displayed by China regarding the supply of products and services to specific countries, and the economic regression that followed Covid-19 has led to high inflation rates and crashing stock markets. The situation has led to a rise in demand for gold.
Gold Is a Promising Option
Reliable reports show that gold shows a lot of promise as an investment option. Investors have a wide range of good options to choose from. Potential investors have a range of options to choose from if they work with reputable sellers. Bank rates and dividend rates are expected to stay low until the economy recovers. Investing in gold would be a sound decision.