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Covid-19 has caused adverse effects on the economies of many countries around the world. Is it worth investing in gold at a time like this?

Many investors are looking for the correct answer to this question. Investments in gold have risen dramatically during theCovid-19 outbreak.

It has also hit the price marks of $2,000 per ounce, an all-time high. Here’s why gold has become such a popular investment in these times:

Weakening Currencies

Due to lockdowns caused by the pandemic, many people lost their jobs, and small business owners suffered immensely.

Governments worldwide were forced to consider a recovery plan to keep the economy sustained.

This influx weakened the currencies around the world, including the US dollar.

Weak currencies were coupled with rising inflation rates. As gold is an inflation hedge, its value only rises at times of economic uncertainty. This makes it a safe investment against bonds backed by weakened currencies.

Economic Uncertainty

It is difficult to predict how economies will recover once the pandemic is over. The recovery to be made is a vague road, and there is much economic uncertainty in the future.

With the high unemployment rate, it will take a long time until things improve.

Gold is an investment whose value is unaffected in times of economic uncertainty. So while there is uncertainty around the economy, there isn’t much around the value of gold.

Decreasing Interest Rates

Interest rates also started to decline once the pandemic hit the country in March last year.

This reduced the borrowing and holding cost of gold and made things easier for investors. Costs of investing in gold were minimized and attracted more investors.

With various strains of the covid-19 virus developing and countries forced to extend lockdowns, economic conditions do not seem to improve anytime soon.

This is an excellent time to invest in gold. If you’re interested in investing in gold to make money during times of Covid-19, Orion Metal Exchange can help guide you!

We also help you buy gold bullions online. Once your investment is through, we provide you with real-time updates, and our distribution rate is higher than the industry average. 

Contact us to learn more about our gold products or call us at 1-800-559-0088 to receive expert advice.