Currently, the Live Gold Price is rising because there is a clear need to invest in a safe haven, enet. As for silver, the report indicates that prices fell by 15% in the third quarter, with a lower yield than gold, as fears of the recession weigh on expectations for industrial demand for the metal. As a result, analysts and algorithm-based price prediction services can and do make mistakes in their predictions of the Live Gold Price. Of course, gold is also used as a hedge in times of geopolitical uncertainty, since the asset provides more stable value when crises, such as war, are looming. And finally, since gold is an uncertain supply that is extracted, it is actually mostly recycled, so when global demand increases, it is difficult to meet supply, so demand causes the price of the asset to rise considerably.
Gold is one of the most consolidated and mature markets in existence when it comes to investable assets. Today, the price of gold is below its recent all-time high, but it remains above support and could be ready for another phase of growth. Theoretically, streaming companies (all things being equal) offer greater price predictability than direct mining companies. Interestingly, there are cases that can affect the price of gold in regional areas that are affected by factors such as weather.
In the future, gold should remain a solid store of value; however, it has been losing part of its market share to Bitcoin and other cryptocurrencies that offer similar benefits. Since gold is also considered a very effective portfolio diversifier due to its low and negative correlation with major asset classes, it tends to rebound in times of uncertainty, so one of the factors to consider is the relationship between gold and other asset classes that feel pressure or pleasure in current financial circumstances. Moreover, as explained above, the value of gold is known to increase when the value of the dollar falls and the Federal Reserve has made it clear that it is willing to cause massive inflation and a devaluation of the dollar to stimulate spending and increase liquidity by printing money. Your personal goals and your research will determine if gold is the right investment for you.
Moreover, the factors affecting the future prediction of the price of gold will only become more relevant with the Covid-19 crisis and the continued need for a safe haven asset. Because gold is such a mature and well-established market, and a fairly stable and slow-moving market, many future predictions are made for the precious metal. That means that price drops should be purchased, especially for anyone who doesn't own a significant amount.
