Why is the price of gold rising?
Average reading time — 2 minutes
In the past year, we have witnessed tremendous success of gold. The noble metal rose in price in most currencies of the world. At some point, by the end of 2020, there was a marked price increase worldwide (for example, +14% in Eurozone*, +21% in the UK, +24% in the US, +28% in India). In some countries, the increase was even more impressive (+32% in Mexico, +50% in Russia, +62% in Brazil, +76% in Argentina). Meanwhile in some countries like Venezuela, the figures were simply staggering — +3020%.
The data are indeed impressive. However, gold shows no signs of stopping: in December, 2020, its financial indicators went up steadily again.
As of January 18, 2021, the price of an ounce is $1,839.
What is the driving force behind the price rally of the yellow metal that pushes it to set new records? This question is answered by Ronald-Peter Stöferle, fund manager at the investment company Incrementum AG.
In the photo: 15 years ago, this economist forecast that gold would surpass the $2,000 an ounce mark.
According to the expert, uncertainty reigns in global markets, and the actions of countries to combat the crisis are quite risky. Astronomical sums of money are being allocated to restore the economy affected by the consequences of the COVID-19 pandemic. The growing debt burden and surplus of currency in circulation create a threat of inflation. These circumstances contribute to strengthening of gold positions, which from time immemorial has served as a protector of savings and an irreplaceable tool of Financial Security.
Ronald-Peter Stöferle projects a significant increase in the price of the yellow metal within the next ten years. The expert does not exclude the possibility that the price of an ounce may reach $4,800 by 2030. An annual rise in prices of 10.1% can lead to such results. Previous years, especially the year 2020, have proven that such paces of increase are real.
How to prepare for the price spike?
The GIG-OS online platform invites everyone to outrun the further rise in the price of the noble metal and purchase this useful asset on especially favorable terms. The GIG-OS Fixing project allows fixing the cost of 100-gram investment bars. This means that you can pay for the order later, at a time convenient for you. Moreover, payment can be made in parts, allowing you to choose the amount of each contribution yourself. In this way you will avoid an inconvenient burden on your personal budget.
The fixing procedure virtually eliminates the risk of the order cost rise if fluctuations in the gold market price occur. You can easily plan out your payment date without worrying that the cost of the ordered bars might suddenly go up.
Entrust your future to gold — an asset that has no equal in the financial arena!
*Eurozone — a monetary union established within the European Union that adopted the euro as the common currency and sole legal tender.
