18:21 9 July 2020
Gold already over $1,800 per ounce
Gold exceeded the barrier of $1,800 per ounce and is the most expensive in a decade. The risk aversion of investors is growing, because they are afraid of the second wave of pandemics, but also the decline in the purchasing power of money.
In difficult times, a certain investment of capital is more important than earning, and in the current situation the demand for gold is naturally increasing. Precious metals maintain their value in the long run and are resistant to inflation and economic crises.
Goldman Sachs analysts predict that the price of gold has a chance to break the historic level of $2,000 in the next year.
The price is also driven by low interest rates, which means that income from bank deposits is virtually zero. Therefore, gold is an alternative for people who do not want to take risks by investing e.g. in shares.
