As Covid-19 continues to affect every aspect of the global economy, fears of recession have resulted in cautious investment decisions.
In a bid to avoid becoming victims of the current market volatility, investors have now turned to safe-haven assets to relieve the pressure and contain risk. With many industries taking massive hits, one sector is thriving amid the crisis: gold trading.
Has the price of gold gone up?
The price of gold has surged and currently is around 23% higher than it was at the beginning of the year, making it the best performing asset. Recently, the price of gold hit almost £1455 per troy ounce, the highest ever, causing excitement among long-term gold investors.
Why did gold prices go up?
The rise of gold prices links back to a number of reasons. Its short supply resulting from lockdowns and other measures deployed to contain the virus is said to be one of the main catalysts. Tensions between the US and China are also shaking up the global business activity, prompting investors to stock up on their funds and find shelter through safe haven buying.
Gold price forecast
Although the uncertainties of global debt and geopolitical circumstances are very likely to impact the gold price charts, everyone seems to be asking the same question: where are gold prices heading? At the moment, everything points to a possible steady increase in the price of gold.
Although the recent ease of lockdown restrictions saw a slight decline on the gold charts, analysts and financial experts predict that periods of economic weakness will continue to improve gold’s attractiveness and boost further demand.
In the longer run, the costs of mining and the challenges it incurs could create a supply and demand issue, increasing the price of our favourite precious metal. Lower interest rates, high inflation and poor exchange rates are also likely to make gold more expensive.
Is it a good time to sell gold?
Forecasting asset prices has always been a double-edged sword, so whether you’re looking to sell or buy gold, you should do your research. The uncertainty of economic collapse as well as continuous changes in interest rates are currently the main factors to keep an eye on when tracking gold prices.
At present, the positive fluctuation of spot prices has seen the gold bullion market flooded with supply from households. People are selling jewellery and scrap gold in a bid to cash in on its value and make a profit. Therefore, if you’ve been investing in gold in the past few years or even months, could this be the time to monetise your investment and start selling your gold?
Where to sell gold
If you want to sell your gold bars and gold coins, at Atkinsons Bullion, we accept deliveries via post and have now opened our doors for face-to-face selling, via appointment. Our team of experienced appraisers will give you an accurate indication of the selling price of your bullion. Our prices whether buying or selling are available for you to see on our website, and we aim to provide you with a fully transparent service, with fair prices for your items, so you’ll have peace of mind that you get the best deal on your gold. Get in touch today!
This blog represents one person’s opinion only. Customers should conduct their own research and take advice before making an investment. We do not offer investment advice.