According to the expert, gold is one of the most liquid assets, and also allows you to diversify your investment portfolio in times of crisis. Moreover, the precious metal has been demonstrating gradual growth for many years and slightly correlates with other investment assets. For example, the average retirement fund in the United States could have significantly improved its performance over the past ten years if it had invested more of its funds in the yellow precious metal.
Gold pricing in the current 2020 confirms the words of the representative of the World Gold Council. Precious metal has already become one of the best investment assets, thanks to which investors were able to preserve and increase their capital. Moreover, in some national currencies, the value of gold has reached new record levels.
However, now there are significant changes in the dynamics of supply and demand in the gold market. Thus, the demand for shares of ETF funds, which are backed by physical precious metals, has grown significantly. At the same time, purchases of precious metals from the Central Banks for the reserves of their countries decreased. Sales of jewelry fell noticeably. The spread of the coronavirus has had a negative impact not on the yellow precious metal supply chain to end consumers.
According to the expert, the investment demand for gold will be crucial for the pricing of the precious metal in the medium term.