Is Gold a Good Investment Right Now

Last updated on April 12th, 2021 at 07:55 pm

gold investment

You may be wondering if making any form of investment is wise in the midst of a global health crisis. Well, the answer is yes. 

Regardless of all the uncertainty going on in the world today, investing, more so in gold, is still worth it. In fact, according to research, some people are predicting the beginning of a new golden era. 

If you carefully analyze recent trends in the gold bullion and gold investment market, you will notice an upward surge in 2020. You can checkout this link https://www.otisgold.com/goldco-review/  for more information. As such, now is the best time to invest in gold.

Understanding the History of Gold Investment

Gold has been considered a valuable item over the years, both as a store of value and its uses. Historically, gold was used as currency in the form of gold coins.  The first-time gold was used as currency was in 643 BC, in the Roman Empire. At around 30 BC, the price of gold to the pound was 15 coins.  The value of gold historically can also be observed from the high value of gold ornaments in those times.  Ancient rulers had thrones covered in gold and even used golden utensils. He, who had gold, was wealthy.

Years later, in the 19th century, many countries used the gold standard. With the gold standard monetary system, the basic unit of account economically was determined by a fixed gold amount. A country’s gold reserves determined the strength of its currency. The gold standard system, however, lasted only till the early parts of the 20th century. By this time, many countries had already abandoned it.

Gold prices have been rising steadily over the years since its use as a currency. From 30 BC, the monetary pricing and value continued to rise to a peak in 2011, dropped till 2015, and started to rise afterward. In August 2020, the value of gold skyrocketed to an all-time high.

Why is Gold a Good Investment Now?

Investing in the precious metal is a pretty great idea right now, according to investment experts. Some of the reasons why doing so will serve you well include:

1. The Uncertainty of times. 

The times from the end of 2019 to until recently have marked great uncertainty in all aspects of life. The global novel Corona Virus hit countries brig a series of lockdowns. Businesses went down, and panic in the stock market ensured. 

The value of major world currencies, including the dollar, declined. Gold thrives in periods of great uncertainty. This can easily be observed from the fact that it reached a high in 2020. 

With the pandemic crisis still ongoing despite efforts to stop it, economic uncertainty continues to loom. If you are looking to invest, gold is the way to go. Click here to read more.

2. Upward trajectory

The price of gold reached the highest points ever in 2020. Also, a close look at the market values of gold still the 1970s till 2020 shows a general direct proportional increase in value against time. 

This, however, does not mean that gold prices did not undergo declines over time. They did. For example, there was a decline between 2011 and 2015. However, looking at where gold was and where it is now is enough evidence that the value has dramatically increased. 

It is, therefore, safe to say that it’s an excellent investment in the long term. Now might be a good time, especially with the significant uncertainties in these recent and coming times.

3. Gold is a safe store of wealth.

All precious metals are considered a great store of value and wealth compared to other forms such as cash. In times of great geopolitical crises, gold is a precious item. Gold is a safety net when other markets are in decline. Therefore, amidst the global pandemic happening right now, investing in gold might be a safe bet.

4. Positive forecasts

In 2020, gold hit and went over the $2000 mark per ounce. This high is by far the highest it has ever reached in history. The tremendous increase may be attributed to the fact that low interest rates by banks are devaluing currencies. 

The economic hardships of a pandemic are what attribute to these low rates. However, even though a vaccine has been found, it will take several years for economies to recover fully. This slow recovery is because nearly all businesses were hard hit. 

Therefore, banks will still have to continue to maintain low rates. As long as these low rates are maintained, the value of gold can be expected to go higher. Experts from the Bank of America predict that gold might reach a high of up to $3000 in 2021. As such, now, more than any other time is excellent to get into gold investment

Next Steps: What to Do Before Investing

Recent market trends and current advice from experts show that these are great times for gold. However, like all other investments, this cannot be taken as the utmost truth. 

Every market is filled with uncertainty. Therefore, if you are looking to invest, it is good to take a deep look at all industry dynamics. Perform extensive research in gold relative to other investments. Also, study all the trends in precious metals investment.

Next, seek personal expert advice on the investment. If possible, talk to more than one. Take all they say into consideration and compare the information they give to your personal research. The biggest mistake anyone can make in investing is investing in something they do not understand.

Lastly, do a personal financial analysis on yourself. How diverse is your investment portfolio? How much money are you looking to invest? Answering these questions will help you establish just how deep you want to go. 

You may want to set up an emergency fund if you do not have one. You can also pay off any high-interest debt that you may have. Your investment may be long-term, and such high-interest debt will only serve to pull you back. read more about investing in gold as a beginner here https://www.moneyunder30.com/how-to-invest-in-gold.

Conclusion

People typically invest in gold when the stock market declines or is predicted to decline. Gold investment is also common when the dollar is declining. Besides, when the inflation rates go high, people typically prefer gold. All these have or are being projected to happen soon. This means that things are looking up for gold, which may be a great investment now. However, no investment is risk-free. It could be a perfect time to invest in gold, but then again, it might not, as the gold rush may bring new challenges. The only sure way to cushion yourself from loss is by keeping your investment portfolio as diverse as possible. Doing this keeps you protected either way.

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