For a long time, gold has been considered as a kind of safe-haven for investors, often been thought of as a hedge against inflation, and with the current COVID-19 pandemic, many gold investors are happy.
There has been an unprecedented situation throughout the world, which has seen economies and currencies become incredibly volatile, and many companies are facing collapse with massive job losses. If you are lucky enough to have invested in physical gold, you might be wondering why your investment portfolio is sitting so pretty in a world facing potential financial ruin, and here is the answer.
Companies Needing Financial Assistance
Similar to the banking crisis of 2007-08, we have seen many small and large companies facing financial ruin, some of which considered to be too big to fail. Any company connected both directly or indirectly to the hospitality or tourism industry are facing uncertain times due to the lockdown and travel ban during the pandemic. Not only have they lost months of profit from the closure, the uncertainty of when things will open and how they will open leaves them in a precarious situation. Large airlines such as Virgin Atlantic have all looked to their respective governments for bailouts and help during these uncertain times. Not only companies have needed help as the public has also required financial aid to ensure that they can eat and have a roof over their heads.
The Printing Of Money
With both industry and the public requiring financial assistance from governments, there has been a significant increase in the amount of money created to keep up with demand. Governments are borrowing at unprecedented levels and these actions cast shadow and fear in the investment markets. With gold being considered as a safe hedge against inflation, these actions by governments around the world have seen bullion gold prices increase to record levels, which gets investors excited.
Invest If You Can
If you are lucky enough to have enough money to invest in gold, then it is something that you should consider doing as quickly as you can. You can start by looking at gold bullion Adelaide dealers have.
With the economic impact of the virus on countries’ economies not being known, experts are predicting that we could be about to embark on a recession, the size of which has never seen before. The good news for gold investors is that with the volatility of currencies due to the pandemic and market conditions, prices are most likely going to continue to rise, so if you have the funds available you may be able to make an intelligent investment.
If you are going to invest in gold, it is advisable to buy physical gold, such as bullion and coins, rather than paper gold, which is typically an investment in a gold mining company. Purchase physical gold and ensure that you have somewhere safe and secure to store it, and you can watch your investment grow in value, which may offset some of your other losses from your investment portfolio.
Just remember, there is always a risk when it comes to investing, some investments have more risk than others, so ensure that you only spend as much as you can afford to lose.