The fact that this year gold demonstrates better returns compared to other investment assets does not surprise most analysts and experts. In the second quarter of 2020, gold showed the following monthly returns: April (+ 7.4%), May (+ 2.6%), June (+ 2.8%). Thus, it was the best quarter for the yellow precious metals since 2016. In addition, he was able to show better profitability compared to other precious metals.
If silver and palladium were in stagnation, then platinum altogether decreased in price by 16%. Given the fact that in March and April, 22 million jobs were lost in the United States due to the Crown Crisis, the IMF predicts a 4.9% drop in the global economy. Therefore, the yield of gold can be considered "modest" - the growth potential was much greater.
Most investors believe that the Central Bank’s “cheap money” policy will only exacerbate the impending crisis. Against this background, the purchase of gold is becoming an attractive investment.
While the price of gold has been showing a noticeable increase since the beginning of the year, at this time the yield on 10-year US government bonds is decreasing. The Fed’s soft monetary policy over the years has led investors to no longer be able to get adequate return on government bonds on capital invested in them.