Analysts at most banks still believe that precious metals have great potential for further growth. The fact is that their number cannot be increased in a few days, unlike fiat currencies. Paper currencies are subject to gradual depreciation due to the regular printing of new money by the central banks.
Analysts at JP Morgan Bank indicate in our review that in the coming years we will see an increase in the risk of currency devaluation, which will be accelerated by monetary and political measures to combat the spread of COVID19. In this situation, gold will be the only winner.
They recommend that investors gradually build up their positions in the yellow precious metal, using each correction for this. The cost of gold is on the way to new records, which lie above the mark of 1900 dollars per ounce. In many world currencies, gold has already updated its value record. Now investors are waiting for this to happen in US currency.