Gold has held its position as a safe-haven asset for an exceptionally long time, especially when considering that markets have seen substantial highs and lows during the year. Despite news of vaccines causing price drops in various precious metals, traders and
investors alike need to consider whether it is the right time to invest in gold.
Should you buy gold right now?
According to financial experts, those who want to invest in gold at the moment, while it is still on a peak, should do so with an eye on the long term. Those who are looking to invest in the short term should first consider several factors. Short-term investors must ensure they actively manage their investment and that they understand the various external factors that influence the price of gold. These factors include the dollar exchange rate, macroeconomics, geopolitics, supply and demand and the
sentiment of the market. Gold has always been insurance against any uncertainties, and despite moves in the market, it will continue to be so for investors if and when situations, like the ones experienced this year, arise. Therefore any time is a good time to invest in gold. Those who want to make a long-term investment are recommended a systematic investment plan, in which investors accumulate the asset in portions as opposed to equities and fixed investments. Through this, shocks that may arise against these assets can be absorbed and the investor can protect themselves from sudden, severe losses. Investors are always advised to ensure they have a diversified portfolio for this exact reason, as a dip in one market might mean a rise in another, offsetting any losses experienced.