Making Gold Investments in 2021
Be it in the form of gold bars or gold coins, gold has been a sought-after form of investment for many years. It has been a symbol of prosperity and wealth for more than a millennium. Unlike other assets such as paper currency, gold has maintained its value over the years.
Due to its rate of return as an investment and stability, gold is widely regarded as a safe haven in the investment industry across the world. In 2019, it had the third-largest average daily trading volume at a whopping 45.5 billion U.S. dollars.
Towards the end of 2020, nearly 495 metric tons of gold were used for investment purposes, which was the second most common use of gold, jewelry being the first.
Keep reading this article to know more about some fundamentals of making gold investments in 2021.
Increase In Spot Gold
Gold prices have been fluctuating a bit this year. However, the overall rate has been increasing, and since the beginning of 2021, spot gold has gained almost 0.66 percent.
Although the prices tumbled below $1,700 per ounce in March, the gold rate climbed up and was being traded at nearly $1,911 an ounce in June.
The Dollar Deflation
According to experts, the dollar is expected to weaken, and this could mean a possible boost for gold as it’s considered a safe investment in times of economic uncertainty.
Economies of some currencies that trade against the U.S. are performing better than it in some instances, which may drive up the prices of gold and precious metals.
Highest Level In A Decade
According to Bloomberg reports, the S&P 500-to-gold ratio is nearing its highest level in over 15 years. By the end of June 2021, it took nearly two and a half ounces of gold to buy a single share of the S&P 500.
Compared to September 2011, this has been a prominent growth because back then two-thirds of an ounce of gold could only get you entry.
Connection With Inflation
The inflation in the U.S. is expected to remain elevated as the CPI rose 5 percent, and the real inflation could be much higher.
Gold is commonly believed to be a hedge against inflation. And with bond yields trading at less than zero, investing in gold can be a good alternative to deal with the effect inflation will have on one’s portfolio.
Buy Your Coins Today!
If you’re looking to invest in precious metal coins, we’re here to assist you. You can purchase gold, silver, platinum, and palladium coins from us. We also provide gold and silver IRAs. Connect with us for more information.