Informed Investment: A SWOT Analysis of Gold for Precious Metals Investors

Gold has held value for many centuries now. Many investors still have faith in this asset, especially now that there are a variety of options, whether that be bars or bullion coins. The coronavirus outbreak, in particular has piqued the interest of non-investors.

With many investment opportunities failing, stocks in particular, the demand for gold is expected to increase.

For those looking to increase their gold investment or are first time investors, our comprehensive SWOT analysis can help you make an informed decision:

Strengths

Bullish market

The market for gold seemed promising at the beginning of the year. The coronavirus outbreak was declared a pandemic by March which led to further increase in prices of this precious metal. The bullish market for gold is expected to last since experts noted the same behavior of this market during the SARS epidemic.

Valuable all over the world

As an investment, gold is ideal since it’s accepted all over the world. There’s no doubt about its value and ability to appreciate due to changes in the market. Gold bullion can be used in the form of collateral for debt and as a guarantee. Even commercial investors invest in gold to spread the risk of their portfolio.

Various denominations

Gold bullion and various gold coins allow gold investments to be made in a number of different denominations. If you just want to test the waters with investing in gold, you can opt for gold coins that are cheaper. Within gold coins too there are various options like the royal Canadian Mint Grizzly Gear or the Gold American Eagle.

Weakness

High price

This year the price of gold is expected to rise significantly. Currently, the price of gold has surpassed the $1700 mark. While this is perfect for existing investors, first time investors will be affected by the high price. The increasing price of gold will surely drive away some.

Illiquid at times

Like silver is acceptable to pay off certain expenses, gold can be illiquid at times. Its high value means it cannot be used to pay off expenses, or that it isn’t accepted by the payee. Finding a buyer can also be tricky when you require funds immediately.

Opportunities

Gold is expected to reach $1900 by the end of the year

Investors with substantial gold investments can rejoice! The price of gold is expected to rise till the end of 2020. Some experts anticipate its price to cross $1900. Considering it has also crossed $1700, $1900 doesn’t seem too far away. Hold onto your investment and prepare to sell in towards the end of the year.

Threats

Other precious metals

Silver and palladium too have been performing well this year. Precious metal investors can therefore be torn between the three metals. When investing in precious metals, make sure they are in line with your investing objectives, whether that be capital gain or liquidity.

Looking at the surging gold’s future, it would be a fair assumption that now is an ideal time to invest. If you’re looking for top gold IRA companies, or to invest in gold coins, get in touch with Orion Metal Exchange.

Call us at 1-800-559-0088 to learn more about our services!

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