Should I buy gold in 2021, current price and immediate prospects?

Despite the growing popularity of new investment products, gold remains in demand among investors.

In the summer, its price peaked at $2,090 per Troitsk ounce, an all-time high.

This upward trend has persisted for hundreds of years; gold prices always rise over the long term, but downward corrections do occur,

as happened in 2013-2014 and after the most recent price increase in 2020.

Therefore, despite the precious metal's investment appeal, many investors are wondering whether they should buy gold in 2021.

Their concerns are quite justified, since the metal has lost 10% of its value in six months and is currently still in a downward trend.

To answer this question, we need to understand the reasons for the fall in the price of gold.

First and foremost, this was the drop in demand in the fall of 2020, which occurred due to the availability of vaccines and the increased attractiveness of the stock market. Investors who panic-sold securities in the spring and bought gold in the fall began selling the metal:

The second factor was the record rise in cryptocurrency prices, with Bitcoin rising almost fivefold in the fall and early months of 2021.

Therefore, many investors decided to switch to more profitable market options, despite the risks.

Returning to the main question, "Is it worth buying gold in 2021?", it all depends on your goals.

If you plan to invest long-term, the answer is a definitive yes.

It so happens that the price of precious metals rises and falls, reversing the trend every few years, but despite the occasional dips, each new high is higher than the previous one.

This means that if you plan to buy gold in 2021 for a period of more than five years, it's a safe bet. For shorter investment periods, everything depends on the global economic situation.

If the global community successfully overcomes the pandemic, the price of the precious metal could fall to $1,700 per ounce.

Under unfavorable circumstances and a new wave of a mutated virus, a forecast of $2,100 per ounce or higher is quite realistic.

Therefore, the decision to buy gold in 2021 should be based on your goals, as well as the epidemiological and economic situation.

For short-term profits, cryptocurrencies . Alternatively, short-term gold trading can be done on a trader's trading platform .