But for a start, it's worth taking a quick look at the past 2020. According to its results, gold became one of the best assets in terms of profitability. Rising risks in various spheres of life, low interest rates and various supporting factors allowed the yellow precious metal to show significant growth. It grew especially actively in the spring and summer, when a new all-time record was set in August at $ 2,067.15 per ounce.
But it wasn't just in US dollars that the record price was set last year. Many currencies of the world showed weakening against gold, so its value in these currencies also showed record values. The WGC points out that only at the end of 2020 there was a correction in the gold market, which slightly spoiled the overall results of the year.
It was thanks to gold that investors were able to stabilize their investment portfolio and limit losses on other assets. The report says that in the second half of 2020, the gold price was more influenced by capital inflows into ETFs and the demand for bullion and coins, and only to a lesser extent by speculative capital.
The situation on the financial markets is now very ambiguous for investors. According to experts, the number of infections is growing in the world and new varieties of this virus appear. Moreover, the US stock market is now in an overheated state, and budget deficits at various levels have reached alarming proportions. In addition, the ECB and the Fed continue their soft monetary policy, which may eventually lead to acceleration of inflation. Against this backdrop, gold is viewed by many investors as a safe haven asset during the crisis period of history.