Central banks recorded a surge in interest in gold amid turmoil in financial markets and a fall in the attractiveness of bank deposits. Wealthy people are increasing their investments in gold ETFs and stocks of gold mining companies.
The price of gold in the third quarter grew by 3.9%, breaking the mark of $2,000 per ounce and setting the historical record of $2,089.2 per ounce. Then there was a price correction, and now the precious metal is trading just below $1,900 per ounce.
Investors are actively investing in gold lately, as the world economy is in crisis due to the coronavirus pandemic which forced the whole world to stay at home. Moreover, geopolitical tensions prevail in the world.
What do they invest in?
Nowadays, not only precious metals are in great demand, but also gold and silver coins. The demand for investment coins more than doubled in 2020. The focus of high-net-worth clients is shifting away from anonymized metal accounts towards market instruments such as gold ETFs.
Will precious metals rise in price in the future?
Experts say it is very difficult to predict what will happen next, given the instability in the world. However, they believe that precious metals will continue to rise in value by another 20%.
Experts think that the annual return on precious metals will be 10% over the next three years. Also, the surge in prices will be stimulated by geopolitical tensions and economic crisis around the world.
However, gold prices fell on Thursday.
Gold futures for December fell by 0.15% to trade at $1,887.95 per ounce. Silver futures for December decreased by 0.09% to settle at $23.875 per ounce, while copper lost 0.25% to hit $3.0223 per pound.
The US Dollar Index, which measures the US dollar against a basket of six major currencies, fell by 0.03% to trade at 93.650.
