Riyadh: Economists say that gold was the only metal that proved to be profitable during the Coronavirus epidemic, gold will remain the best for investment in 2021.
According to the Saudi website, the price of gold coins has risen by 24% this year during the Coronavirus epidemic crisis and it is considered to be the most profitable metal annually since 2010.
According to the World Gold Council, its value is due to the demand for resources, it is used for investment, it is a safe asset and a luxurious metal, it is a component of technology, while historically gold also proves that At the same time, it preserves its value and status.
According to the Gold Council, gold can expand any investment portfolio in four main ways, providing long-term returns and minimizing losses when the market is in crisis.
It provides liquidity without any debt risk and ultimately improves the overall performance of the portfolio. Gold prices rose to record levels in August when the price of gold per ounce reached 2,075. Had arrived
Spot gold rose 0.3 percent to 87 1,877.43 on Thursday, while US gold futures rose 0.3 percent to 88 1,882.90.
Givani, a UBS analyst, says the cumulative effects of a weaker dollar, negative real rates, low yields, and uncertainty caused by a new strain of the coronavirus are helping gold’s value. Are
Analysts question whether gold, the last safe haven, could provide investors with a return in 2021.
Mazen al-Sudairi, head of research at Riyadh-based financial services company Al-Rajhi Capital, says global gold consumption has been 4,500 tonnes a year over the past decade.
That is why the price of gold has risen since March 2020. Gold prices have fallen below record highs in August.
He also said that the risks posed by the printing of excess currency by central banks around the world and gold investment could be improved.
According to him, once the downward trend in gold prices stops and its direction changes, the environment of rising inflation and low-interest rates will also help gold prices.
Vijay Walisha, chief investment officer at Dubai-based Century Financial, said gold prices rose sharply in 2020, still 10 percent lower than the record rise in August.
Demand for gold also depends on positive developments in the development of the virus epidemic vaccine and hopes for economic recovery.
However, gold coins have long been favored as leading central banks continue to make offers to handle economies.
Bitcoin has been a part of the business community for the past few years, with some saying it could be seen as the gold of the future.
Economist Cornelia Meyer said: “I do not agree. Bitcoin is not as important and reliable as gold at the moment, but this year has seen the first temporary inflow of institutional money into the cryptocurrency.”