Why is gold getting cheaper and is it worth buying now?
Everyone knows that gold is the main investment asset; besides, it is accumulated by central banks to maintain the stability of national currencies.
The precious metal is in such good demand that you can often face a shortage of gold bars.
For hundreds of years, we have become accustomed to the fact that the price of gold is rising and a purchased bullion or precious coin can significantly increase in price in a few years.
But imagine our disappointment when, after the purchase, we discover that the price not only has not increased, but has even dropped significantly.
In order to see the full picture, you must first remember what led to the last increase in quotes.
Two years ago, the price of the precious metal began to grow at a record pace and surpassed $2,000 per Trinity ounce:
The reason for the record growth was the Covid 19 pandemic; even before the start of the economic crisis, investors began to massively transfer their capital to the safe haven that is gold. Panic and buying began, which led to a shortage of gold bars.
As a result, the price of the precious metal reached its peak in August 2020, and its value began to gradually decline.
The main reason for the fall was that quite a lot of gold was bought due to the rush of demand, and after the movement slowed down, investors began to sell gold en masse and invest the money received in more profitable assets.
An important role was also played by the fact that at this time the epidemiological situation began to stabilize, which meant that many needed money.
Now the fall is being fueled by stock speculators opening sell deals and fueling rumors that the price of gold could fall to $1,600.
At the moment, a rather paradoxical situation has developed, while inflation rates are rising everywhere and world economies are falling, gold continues to fall in price.
This situation cannot last long; with a high probability it can be assumed that the price of gold will not fall below the $1,750 mark, and then return to growth again before the beginning of 2022.
Still, it’s more pleasant to buy gold than to sell - https://time-forex.com/inv/gde-kupit-zoloto-vo-vremya-pandemii