This Is Why You Should Buy Gold And Silver In 2021

Gold and silver closed out their best years since 2010 following a year of unprecedented volatility brought on by the COVID-19 pandemic.

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7 REASONS YOU SHOULD INVEST IN GOLD FOR 2021

Gold- an asset that never goes out of fashion. In 2020, Gold was one of the most sought after asset classes due to the uncertainty in the global markets. Gold is one of the least available common metals on the earth.

For the last two years, gold has appreciated considerably due to various reasons. However, it is yet to attain its previous peak of 2011. What are the various factors that could influence the price of gold going forward?

  1. Reemergence of Covid
  2. World Economic Situation
  3. US Dollar Value
  4. US-China-Reset of the World Relations
  5. Inflation/ Interest Rates
  6. Printing of Money
  7. Other Factors

Gold prices will depend on the above factors in general. Although the vaccination for Covid-19 has started making its way to the markets, the emergence of the new strain of Coronavirus can lead to gold moving up. In general, any pandemic will create havoc in the global economy, and in those uncertain times, gold’s price will move up. Although the chance of this scenario happening in the near future is minimal, one never knows for sure. 

At present, economies are in a buoyant mood with the relaxation of Covid-induced lockdowns, and hence in the near term gold could be in a slow path. However, there are many other factors that work in favor of gold.  

US Dollar value plays an important role in deciding the price of gold. Due to flow of dollars to emerging markets, the dollar could weaken in the short term which will drive the price of gold upwards. This has already started happening and could play out in the short to medium term. The dollar’s weakness could help gold prices to move upwards.  

Even before the pandemic, US-China relations were one of the reasons for gold prices to move up. However, under the new US President, one can expect the tensions to be lower. Nonetheless, the relationship will not smoothen out completely. Hence under this scenario as well, still there is a chance for gold prices to go up. 

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