Last year was indeed the year of the Bitcoin. However, according to some experts, gold continues to be the ‘safe-haven’ choice of asset among maximum savers. It is also believed that this precious metal’s price will only increase this year because the rate of interest is at rock bottom. Governments are continuing to print money for preventing a disastrous global recession.
If the interest rates are low, it nullifies that gold does not help make an income. Eventually, it elevates the lure of the precious metal. However, monetary stimulus signifies more money streaming into assets like gold.
Speculations of Gold’s Price in 2021
Last year ended with nearly £1,382 a troy ounce of gold, and it is about 19% higher than what gold’s price was at the beginning of 2020. Gold’s price indeed reduced from its record price in August, which was £1,570. However, gold experts believe that the metal’s price can reach a new record level (as much as £1,600) in the upcoming days.
And this is indeed good news for those looking to get cash for gold and meet their short-term financial needs.
According to the chairman of Charteris Treasury Portfolio Managers, the most significant factor driving the upsurge in the gold price will be money printing by the US and other central banks to some extent in an unparallel way.
Eventually, investors will opt to invest more cash into this precious metal to conserve their asset’s value. Moreover, he believes that the gold price surge will also propel the silver price to move upwards, nearly to £26 a troy ounce from £19.
The gold industry has stamped Bitcoin as the ‘digital gold’ as it is also supplied in limited numbers like the precious metal and does not pay an income to investors.
The director of research at BullionVault, Adrian Ash asserted –
“Bitcoin is simply God’s way of telling us that there’s too much money about, much of it desperate to chase a fast buck. No doubt some of the excess cash sloshing around will be destroyed by Bitcoin’s current price spike, just as it was sucked in and destroyed by Bitcoin’s previous three price bubbles.”
He further believes that there could be not much difference between gold and Bitcoin. Hackers cannot steal physical gold, neither it can be lost nor destroyed.
BullionVault Conducted a Research Late in 2020
BullionVault carried out research in late 2020 among its gold consumers, and the result is pretty positive.
Almost 60% of the customers said they would not stop buying gold even after knowing that mass vaccination could soon curb the coronavirus, paving the way for stable economic instances. Concerns over inflation will partly drive the purchases.
Adrian Ash believes that investors are likely to make the mistake of contemplating gold as finished as the vaccine will bring the coronavirus soon under control. He said –
“The upswing in the price of gold began 18 months before Covid, and its prime mover remains the slow but relentless devaluation of cash savings, with central banks committed to holding interest rates below inflation.”
Overall, gold’s price is expected to only increase in the coming months. Gold spot price today (4th January 2021) is £1,410.
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