Recent times have been unusually distressing for many investors. The global economic crisis is lurking around the corner and investors are afraid to seek refuge from safe investments. Only a few sectors have survived and even gained new impetus from the recession caused by the coronavirus.One sure phenomenon has been repeated in the past decades with the gloomy economic outlook, namely the increased interest in investing in gold. For example, in the 2011 crisis, the price of gold rose to record highs. So you can buy gold and take the right decision.
Now, many experts and ordinary Trust Fund Benefits investors are frantically wondering what the economic crisis caused by the 2020 corona virus will mean for the development of the market value of gold? In other words, is it worth investing in gold now?
Gold is not a currency
No state currency is officially pegged to gold anymore. Yet gold is still perceived to some extent as a currency. This is understandable, of course, as gold has been used as a means of payment for millennia. Today, gold is used to make coins, jewelry, gold bars and plates. Gold has also adapted into our everyday speech. Expensive things are said to be “worthy of gold” and the “heart of a particularly well-functioning person is full of gold”.
Gold price developments
The price of gold has fluctuated over the years. The last time the bottom readings took place was in 2014, when the price of gold was 880 dollars per ounce. The price of gold is generally measured in ounces. One ounce is about 31.1 grams. As of this writing, the price of gold is 1,473 dollars an ounce. So at least gold can’t be said to be a completely flat investment, even though it may suddenly seem like it.
Gold in the current situation
Expert reported how the gold bar store had to close its doors. There was simply not enough gold for everyone. In addition, the congestion of people in the space of a small stone foot shop created a favorable risk of infection and threat to the spread of the coronavirus. Usually, the price of physical gold bars is a few percent higher than the official world market price, but now the difference is about 17 percent.
Uncertain times in the global economy make people buy investments that are considered safe. Gold sales have always increased as uncertainty has crept into the market and listed companies have issued earnings warnings. Investing in gold feels like a very secure investment quickly, but is it?
Gold vs. equity investing
In terms of investment, gold can be compared to other possible investments, for example, common investment targets are shares. Earnings per share depend entirely on what shares the shareholder has purchased and how many there are.
