Could gold become a safe haven once again?

 

Maybe it’s high time to go back to the roots? Bitcoin charts have flatlined, and the peak from February seems to be over, stocks of tech companies started falling, there are some voices (Warren Buffet) claiming that the Bonds will soon be over. So what to invest in?

Gold may have depreciated a bit, having fallen from the latest peak from August 2020, but it still could become the most reliable investment option. The said peak in the summer brought the value of $2,070.05 per ounce. Now it’s somewhere around $1,800, and it looks like it will not change significantly this year.

How did gold perform lately?

At the end of February, gold rallied by +0.14% (New Zealand) and +0.56% (United States), which meant the gold prices were pushed back in March beyond the barrier of $1,800. But it reversed soon after, and the prices declined - in Great Britain, it actually fell by -0.32%.

How about the future?

Without a slight doubt, there is a slight sentiment towards gold creeping into the market once again. And the price of it is supposedly stuck between $1,800 and $1,850 per ounce.

The inflation will not be able (according to some voices) to support the gold prices, even if the projected 2% increase will occur over the next two years. It’s still a relatively low inflation rate, and the prospects are, that the economies will soon recover.

But the last time gold was at the place it is now, was in 2011. Back then the Money Supply was equal to $9.5 trillion, with the gold supplies at 175 thousand tonnes. After the decade the Money Supply has doubled, but the gold supply increased only by 14%.

To get to know more about the current gold situation, the possible trends, and more, visit the Disruption Banking website, where you can find an interesting piece on the topic. Also, you’ll find there a comprehensive statement from Jason Cozens, the CEO and Founder of Glint, who analyses the long-term possible outcomes. To see the article, simply enter the link: https://disruptionbanking.com/2021/03/08/is-gold-the-safe-haven-it-once-was/.