Jewelry items made from gold

Despite the impact of COVID-19, gold and silver continue to shine. Experts believe that their prices are likely to rise further this year, and investors should keep investing in these two precious metals.

Here are two things investors need to know before investing in gold and silver this year. 

Gold Prices Will Continue to Rise

The experts expect gold prices to reach U.S. $2,300 per troy ounce in 2021. According to Goldman Sachs, they were targeting $2,300 earlier, and they currently expect the inflation rate to rise to 3% this year.

They also believe that increased demand from recovering markets in India and China can also lead to increased prices.

Besides that, huge government debt, constant negative real returns on bonds, continuous inflation and market turbulence will all also push gold prices further. 

Collapsing Dollar Will Further Increase Demand for both Gold and Silver

Generally, gold prices increase whenever the dollar’s value decreases relative to other currencies. When the dollar declines, gold prices decrease in other countries, and hence,demand increases.

If we look at current trends in the market, it appears that the dollar will continue to decline this year. Experts believe that the dollar can lose up to 10 per cent of its value, which means gold prices will continue to rise. 

Silver Will Outperform Gold

The pandemic resulted in the stockpiling of many precious metals. While gold and palladium prices increased by more than 20% this year, silver prices rose 47%.

One of the reasons for increasing silver prices in 2021 is that silver is a key component in many green technologies.

With Biden in power, the government plans to invest huge sums of money in hybrid cars and other environmental technologies.

This will inevitably lead to an increased demand for silver in the market and hence, a rise in prices. 

These facts and figures suggest that investors should continue to invest in precious metals such as gold and silver.

Get in touch with Orion Metal Exchange for expert advice on how you can invest in precious metals to increase your wealth and protect it during crises.

You can also create your own precious metals IRA account with us, or choose from our range of options. Visit our website for more details.