Discover the analysis of Trading to diversify your investments.
The price of gold has had a spectacular year with an increase of + 32% since the beginning of March 2019, going from $ 1,327 per ounce to more than $ 1,753 per ounce currently, unheard of since 2013.
Does the question then arise of the reasons for such an attraction of investors towards the yellow metal? Does gold play the role of safe haven in times of crisis? Should we invest in gold during a recession? How to invest in gold and precious metals?
GOLD PLACEMENT: SOARING GOLD PRICE ATTRACTS INVESTORS
It is very likely that this gold rush is mainly linked to the current coronavirus crisis. This factor, combined with the global economic recession, is conducive to the rise in the price of gold, considered a safe haven. Be careful, however, during the most intense stock market crises, gold tends to also fall as investors sometimes wish to settle all of their assets during these specific periods.
The other reason for investors\\\' keen interest in gold comes from the central bank's monetary policy. Rates are currently extremely low, even negative, and this context does not encourage investors to choose the debt market. This situation therefore reduces the choices of investors, particularly with regard to the bond market. And if they do not wish to choose gold silver stocks to buy, \\\"the field of possibilities\\\" is then restricted, hence the fall back on gold as a safe haven asset.
Finally, in the longer term, over a horizon of 15 to 20 years, it is very likely that gold usable on land will arrive in a situation of scarcity, leading to a potential increase in the price of gold. In the shorter term, the possible possibility of a reduction in economic uncertainties linked to the start of the Covid-19 crisis could also lower the price of gold.