The Future of Gold Investments
People have been fascinated by the beauty of gold ever since it was discovered 4,000 years ago. But its beauty isn’t the only thing that gold is so well-known for. It’s used as a currency, investment asset, and source of monetary support in times of need because of its high liquidity value. Gold investments aren’t new. People have been investing in this lustrous precious metal for years.
But what does the future hold for gold? Is it wise to invest in gold today?
Pre and Post-Pandemic Situation
2020 was a year that nobody will ever forget. The global economic shutdown and uncertainty had people looking at ways to protect their money from being devalued. During the pandemic, the stock markets crashed, but gold hit new highs. It was because investors around the world started to relocate their wealth because gold offers a safe haven and a hedge against financial uncertainty.
At this time, gold prices reached an all-time high of $2,074 per ounce. People started investing in gold because of its consistent track record of withstanding economic turmoil. Also, gold has excellent liquidity. For someone who holds gold as an asset actually has massive value in store that they can liquidate anytime they want!
In 2022, the global demand for gold surged by a whopping 11%. Investment demand for gold increased by 10% year-on-year and reached 1,107 tons. Demand for gold coins and bars also increased to 1,217 tons. 2022 is considered the strongest year for gold demand in over 10 years!
Gold Market in 2023
2023 started with strong momentum for gold. The gold market rose by 7% in January. The reopening of China market is one of the many factors that led to this bullish trend. However, after a strong start, the gold fell to a 5-week low of $1,848 per ounce on 14th January. But, from February, gold has been seen pulling back.
The fluctuation in gold prices is primarily due to the belief of a recession following a disinflationary period. According to analysts, the value of gold will go down to $1,730 by the end of the first quarter this year, but by the end of the year (2023), it’ll gain back its momentum and rise to $1,900. 2024 could be a slow start for gold, with the price expected to fall to $1,895.
Is It a Good Time to Invest in Gold?
Nobody can say for sure if it’s a good time to invest in gold right now. The financial market is volatile, and there’s no certainty as to which direction gold will go. But one thing’s for sure; gold offers a great hedge against inflation, is an excellent addition to the investment portfolio, and has high liquidity. It comes with its risk, but the future looks bright for gold.
It’s strongly recommended that you conduct your research before investing in gold. The market is volatile, and the trends keep changing by the minute.
If you’re planning to how to invest in gold this year, get in touch with Orion Metal Exchange. With extensive experience in the precious metal industry, we’re a precious metals exchange that can help safeguard your future.