For several months, investors have been observing successive historical increases in the gold rate. When we hear the words ‘crash’ or ‘crisis’ more and more often, the greater the probability that the so-called safe assets will become more and more expensive and valued higher. In the context of several months of economic uncertainty and the resulting peculiar rally on gold prices, investors could assume that the boom in this market will soon pass, but nothing could be more wrong. As emphasized by Jarosław Żołędowski, President of the Management Board of Mennica Skarbowa SA, the price of gold should show new records in the perspective of several quarters, and it should be assumed that an increasing group of investors will be interested in this asset.

“It has been known for a long time that the gold exchange rate is correlated with stock market indices, and these, in the face of uncertainty caused by the coronavirus epidemic, began to drop sharply. Gold, always treated by investors as an insurance policy that holds value better than other assets thanks to its purchasing power, has become an attractive investment in this context, and demand has shot up. The price was additionally driven by the reduced availability of gold. The freezing of the economies resulted in interruptions in the operation of the mines, and the closing of the borders – problems with the transport of the already extracted metal. This phenomenon continues,” Jarosław Żołędowski, President of the Management Board of Mennica Skarbowa SA,.emphasized 

The ongoing Covid-19 pandemic is translating into a deteriorating condition of global economies. Inflation, the falling value of currencies, including the dollar, are increasingly visible and bothersome. Investors are selling out stocks, fleeing gold to help keep money from losing value. Analysts emphasize that there is no indication that this trend will reverse. It is enough to mention Warren Buffett – a well-known investor, who until recently did not belong to the supporters of investing in gold, openly calling it a "trinket", recently bought shares of a gold mine, while selling almost all shares of one of the largest American investment banks.

(WBJ)