As Gold Hits All Time High – Is Now The Time To Buy?

The coronavirus pandemic has affected the global economy and reduced the purchasing power of fiat or real-world money. Conversely, the health crisis has demonstrated gold’s potential as an investment asset.

The price of gold has surged to record highs in the first week of August, and it looks like the precious metal’s value will continue to rise in the coming days. You might want to jump in the bandwagon and invest in it yourself. If you want to learn more about the process, InvestingInGold.com has put forth a case on why you should buy gold.

You might also be thinking that it may be too late now since the entry price would be too high. However, here are the reasons why you still ought to consider purchasing this precious metal today:

 

  1. Its Value Might Still Go Up

At the start of August, the price of gold surged to nearly USD$2,000 per ounce. While this may seem high now, analysts predict that it’s still likely for the precious metal’s value to rise after a few months. 

According to the Bank of America, gold could hit USD$3,000 per ounce due to zero rates. So, if you bought one ounce today at USD$2,000, its value would rise by 50% in the next few days or months, which remains to be a high profit margin compared to other types of assets.

While you may have to pay a higher entry price, you can still enjoy substantial income on the principal that you’ve invested. With this, it’s better to purchase gold today if you have the capital.

 

  1. It’s A Safe-Haven Investment

This precious metal is also considered as a safe-haven investment. This means that the best time to invest in gold is when there’s uncertainty in the market. Part of the reason why this asset’s value increased is that the coronavirus pandemic has stifled businesses and commerce, which led to a slow movement in global finances.

The market is still seen as volatile since investors still can’t predict whether the government’s coronavirus response would be effective or not. It remains to be seen whether life would return back to normal.

On one hand, if stocks and indices can recover close to their pre-virus levels, gold’s value may decline. Central banks are also doing all that they can to minimize the adverse economic impact of the pandemic. 

However, things could still go worse. As an investor, you must make sure to mitigate risks to keep your finances solvent at any given time. 

It would be better to invest in gold right now if you can so that you can hedge inflation. This way, you won’t have to worry too much if another global crisis rolls in since you have a safe-haven investment.

 

  1. Preserve Your Wealth For The Long-Term

Gold has withstood the test of time and proven itself to be a long-term store of value. Over the years, people have invested in the precious metal as a means to preserve their wealth. Its tangible nature is excellent for an inheritance setup since you can literally hand it down to the next generation. 

  1. You Need To Diversify Your Portfolio

If you haven’t invested in gold yet, now is the perfect time to do so. As an investor, it’s become more crucial for you to diversify your portfolio to minimize the risk of losses.

As you may have experienced, investing in purely stocks may have led to negative results for you with the current coronavirus pandemic.

Say, you placed your money evenly only on two businesses. One is an airline company, while the other is a restaurant. You might be facing significant losses nowadays because these industries have been severely affected by the global health crisis. However, if you diversified your portfolio, such as investing in gold, you would’ve balanced out the financial damages brought about by the pandemic.

 

  1. You Want The Liquidity

Another valuable benefit that gold can provide in times of crises is that it’s highly liquid. This means that you can convert it to cash immediately when you need the money. You can easily find a buyer to purchase your gold bars or coins and gain funds for your emergency.

 

Conclusion

The price of gold has surged and may continue rise to an all-time high. It’s still a good time to invest in the precious metal because its value may still go up, and it’s proven to be a safe-haven investment. This allows you to store your wealth successfully in the long-term regardless of global crises. Moreover, you can benefit from diversifying your portfolio and its liquid nature, especially during emergencies.

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