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

Despite the fact that new investment products are increasingly gaining popularity, gold continues to remain in demand among investors.

In the summer, its price reached its maximum of $2,090 per Trinity ounce, which is a historical maximum for the entire period of trading.

The upward trend has been maintained for hundreds of years; the price of gold always rises in the long term, but downward corrections also occur.

As happened in 2013-2014 and after the last price increase in 2020.

Therefore, despite all the investment attractiveness of the precious metal, many investors are wondering whether to buy gold in 2021?

Their fears are quite justified because metal has lost 10% of its value in six months and at the moment there is still a downward trend.

In order to answer this question, you need to understand the reasons for the fall in gold prices.

First of all, this is a drop in demand in the fall of 2020, which occurred due to the arrival of vaccines and the increase in the attractiveness of the stock market. Investors who sold securities in a panic in the spring and bought gold in the fall began to sell metal:

The second point was the record rise in price of cryptocurrencies; the price of Bitcoin increased almost 5 times in the fall and first months of 2021.

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

If we return to the main question, “Is it worth buying gold in 2021,” then we can say that it all depends on what goals you are pursuing.

If you plan to invest money for a long term, then you can definitely answer yes:

It just so happens that the price of the precious metal either rises or falls, a change in the direction of the trend happens every few years, but despite periodic falls, each new maximum is higher than the previous one.

That is, we can say that if you plan to buy gold in 2021 for a period of more than 5 years, then this is a win-win option.

For shorter investment periods, everything depends on the situation in the global economy. If the global community successfully overcomes the pandemic, then the price of the precious metal may drop to $1,700 per Trinity ounce.

Given an unfavorable combination of circumstances and a new wave of a mutated virus, the forecast of $2,100 per ounce and higher is quite realistic.

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

Cryptocurrencies still remain more attractive for making money in the short term . Or short-term gold trading in a trader's trading platform.