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The year 2020 has brought a lot of surprises: pandemic, geopolitical problems, market volatility — all this forced both big investors and ordinary people to rethink risks. A growth in interest regarding a proven defensive asset, namely gold, has been observed.
Over the past 12 months, the exchange rate of gold has increased by more than 20%. The peak was in August 2020, when the price of an ounce reached an all-time record high of $2,069. Since then, the yellow metal has been continuing to maintain strong positions, exceeding the last year’s figures for the corresponding dates.
As of December 8, 2020, the price of an ounce is $1,870.
According to experts, the price of gold will continue to grow in 2021.
“I'm still fairly bullish on gold, and I think $2,300 is possible as a level.”
Edward Moya, Senior Market Analyst at Oanda Corporation
The Perth Mint CEO Richard Hayes is convinced that the precious metal rally has been driven by the dollar index decline. According to him, the American currency is losing ground due to the US trade conflict with China and the growing national debt of the United States. If the dollar continues to fall in 2021, the price of gold will increase manifold. Hayes’s hypothesis is supported by the growing interest of both professional investors and retail buyers in the precious metal.
Analysts of the large financial investment company The Goldman Sachs Group, Inc. are also convinced that the yellow metal will continue strengthening its positions. Experts project an increase in the inflation rate in the United States by 2021. It is known that the precious metal is considered one of the best tools of protection against inflation, as it allows compensating for the depreciation of assets like fiat currencies caused by market instability. This could lead to a significant increase in the demand for gold.
CEO of Agnico Eagle Mines Limited Sean Boyd believes that the printing of money and the growth of government debt will not harm the yellow metal — quite the contrary. Next year, the price of gold can rise to $2,500 or even $3,000 an ounce. According to Boyd, there are two ways how the events will develop further. The first way is austerity, which “politicians don’t have the courage for and the general public doesn’t have the appetite for.” The second way is that money is going to “be spent more and printed more” in attempt to create inflation. According to the expert, that’s ideal for gold.
Gold is a timeless security
Experts are not surprised by the continuance of the gold rally. The COVID-19 pandemic and the decline in healthcare have brought the precious metal to the fore. Today everyone is talking about it and rushing to buy it. Unlike currencies or stocks, which devalue in the face of market volatility, gold, on the contrary, rises in price.
Gold is not subject to negative effects of time,
external factors and financial crises.
According to experts’ forecasts, the noble metal may well conquer new heights in 2021. Therefore, those who store their savings in gold look to the future with confidence and enthusiasm. In order for as many people as possible to secure their savings from the harmful effects of inflation and to be ready to start the new day without fear, a special GIG-OS Time Shift project has become available on the GIG-OS online platform.
The GIG-OS Time Shift allows you to buy gold on particularly convenient, profitable and safe conditions. Buy 100-gram bars in small parts, preselecting the amount of contributions that you can make at your convenience. After completing the deal, you receive additional 5 or 10 grams of gold as a gift. Create your personal gold reserve without burdening your budget. Regular savings will help you gain Financial Security and boost confidence in the future.
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