Gold Shines Brightly Throughout The COVID-19 Crisis
When it comes to material investment, gold has always been in clover. According to World Gold Council, gold stands as a trusted commodity in the international market. It offers no counter-party hazards and remains steady against paper currencies like the dollar. Demands for investment in gold skyrocket with every passing year with a current growth rate of 18% per year.
Take a look at the six reasons why gold shined brightly throughout the COVID-19 crisis:
Hedge Against Inflation
When inflation is high, the gold prices increase, which is why most Americans prefer investing in gold. This shields you from the rising cost of living caused by inflation. As a result, gold investing is a good investment strategy protecting against adverse economic conditions during any pandemic.
Investments that can be diversified make up a strong investment portfolio. It is a high-quality diversifier as gold has a negative correlation with equities. This indicates that when the stock market faces a downfall, gold prices tend to rise, making gold shine brightly in situations like SAR and Covid-19.
The value of a currency tends to depreciate with time. This may take several hundred years, but currency values aren’t guaranteed to stay high for an indefinite period. Gold prices, on the other hand, are the polar opposite. Even when the value of some of the world’s most powerful currencies falls as it did during covid, gold prices soar.
Global Financial Crisis
As a result of the 2008 global financial crisis and the current pandemic, stocks and bonds have performed poorly. Inflation has also shot up due to supply chain constraints across the world, which has led to a dramatic increase in inflation. To hedge against these volatile conditions, precious metals such as gold provide investors with an instrument that is a proven store of value.
Rise Of The Bourgeoisie Class
With growing middle classes, countries like China and India have been tearing for the past five years. Gold imports are increasing as the middle class continues to grow, particularly in India, where gold is presented to newly wedded brides. These countries’ central banks are also importing gold in large quantities to protect their foreign reserves from a sinking dollar.
The price of gold fluctuates with time, but it’s still one of the best investments you can make. For example, you purchase gold at a low price, after which the market crashed, and the gold prices went low. While the market is not performing well, you still have gold in your possession.
Gold has an intrinsic value. It might take years, but you can always sell gold at a higher price as soon as prices go up.
Gold is a natural commodity with intrinsic value; it is one of the greatest possibilities for short- and long-term investments. Orion Metal Exchange has created strategic connections with mining firms worldwide in response to the increase in demand for precious metals. We provide a diverse range of services to our clients, including all precious metals bars and coins. Contact us today to avail the best precious stones exchange service in the US.