Gold prices rose to sky-high of $2000 in early August. This rise has given shockwaves around the globe, especially during the global recession during the COVID-19 pandemic. Following this, the U.K. has also announced recession officially earlier this month. It has come after the economy has retracted for two consecutive quarters. This recession has been felt throughout the world and has also affected the strongest economy of the world U.S. as well. This recession during the COVID-19 is expected to be worse than the 2008 recession.
One factor that has not changed during these times is Gold. It is one measure that is used to store wealth around the globe. In other words, this article focuses on the reasons why you should invest in Gold bullion in 2020.
Gold prices topped record highs in August 2020
The gold prices have shown a steep rise and touched the $2000 point for the first time as a response to the investors flocking up Gold in this recession amid COVID-19. Though this month showed some fall in prices but, gold prices have been at an all-time high with an increase of 30% in merely three months. This trend is presumed to continue as other types of investment are losing money due to recession.
The number of COVID-19 cases has shown a continuous increase all over the world, and due to this, many administrations are also reluctant to reopen or at least put a date as to when the lockdown will end. The same trend is also followed in the U.K. where 2nd lockdown has been imposed in many towns across northern England due to 2nd wave of the virus. It could also drive the investors to invest their wealth in Gold.
Gold is a resilient form of investment
Due to the continuous increase in the COVID-19 cases, the recession is expected to last longer, and this could show a significant effect on other common forms of investment. Investments such as bond yields have come close to zero and even show negative growth in some markets. It gives another reason for the investors to shift their attention to Gold. Gold is also the preferred investment at the moment because Gold as an investment is an excellent source to mitigate the regular lows of the market during these times.