Home » Business » Gold probably won’t earn you a package this year

Gold probably won’t earn you a package this year


Analysts expect that after last year, when gold weakened by almost four percent, yellow metal wheat will not bloom this year either. Investment demand remains weak, so only retail is holding back the fall in prices. According to many, gold has lost its sex appeal. Cryptocurrencies compete with him.

The beginning of this year is marked by rising inflation and growing political tensions between the world powers. Theoretically, this sounds like an ideal scenario for anyone who believes in long-term growth potential of gold. But its his price on these reports it does not react with any rapid growth. Because gold does not generate any return, it is difficult for many investors to determine its “right” price.

Finding the bottom

After the successful years of 2019 and 2020, when gold strengthened by 19 and 24 percent, respectively, sobering came last year. Yellow metal weakened by almost four percent last year. In addition, most analysts believe that gold will be looking for a new price bottom this year rather than a growth feast.

Who is a superinvestor? Watch the Investment Call 2022!

Money

Bitcoin, gold or Tesla? Compete in Investment Call 2022! We invest a virtual one hundred thousand crowns for three months.

Read the article

“We expect the reasons that weakened gold last year to persist this year,” said James Steel, chief precious metals analyst at HSBC. “While the global economy is slowing, growth is expected to remain above average in the coming years, combined with rising interest rates, discouraging the need to buy gold, which is historically seen as a safe haven.”

According to Steele, rising inflation has not yet persuaded institutional investors to increase their investment in the precious metal. HSBC lowered the expected average price of gold to $ 1,723 per troy ounce. The precious metal is currently selling for $ 1,822.

Analysts expect that the likely rise in interest rates by the US Federal Reserve in the second half of the year will have a further negative impact on gold prices.

gold, gold bars (illustration photo)

Buying investment gold or silver pays off. But with caution

Money

In times of crisis, when other assets are falling, gold or silver are among the favorite means that hold value. Precious metals are also popular because of their tangibility, unlike stocks or bonds, you can touch them. But does investing in gold or silver yield a sufficient return? And how does precious metals trading actually work?

Read the article

“With the Fed’s ultra-loose monetary policy approaching the end and monetary stimulus coming to an end, we expect support for precious metals to disappear in 2022,” analysts at the Australian bank ANZ write. “Although there has been talk of raising Fed rates for a year, rising inflation and real negative interest rates have so far saved gold from a major fall, ”They add.

New competition

To make matters worse, gold, which has long had the status of protection against the “bad policies” of central banks, has new competition. The cryptocurrencies challenge him to a duel. These, especially bitcoin, are increasingly found in the portfolios of ordinary investors.

Until recently, the world of digital currencies was too small to leave a visible mark on the demand for gold. But times are changing. The two largest cryptocurrencies, bitcoin and ethereum, now have a capitalization of $ 1.3 trillion (almost 28 trillion crowns), which is ten times more than two years ago and about a tenth of the value of all gold. The World Gold Council (WGC) estimates that there are 200,000 tons of gold in the world with a current value of $ 12 trillion.

roulette, investment betting

Invest in companies and real estate, avoid gold, Czech super rich advises

Money

Building plots, start-ups, residential real estate and stocks. These are hot investment bets of Czech and Slovak dollar millionaires, ie people with disposable assets exceeding 22 million crowns. In view of rising inflation, the super-rich are advising to include more flexible assets in their portfolios that can better withstand impairment, according to Wealth Report 2021, backed by J&T Banka. By contrast, formerly traditional gold is now a wealthy investment flop.

Read the article

The year 2020 already showed where investors could go. Chris Wood, a sworn gold advocate at Jefferies Investment Bank, has lowered its recommendation on how much a pension fund should invest in physical gold. Instead of 50 percent it was only 45 and for the released five percent he recommended buying bitcoin. He did it again last November, increasing the cryptocurrency allocation to ten percent.

So far, wild fluctuations in the price of bitcoin may discourage conservative supporters of gold. Over the last five years, the price of gold has moved an average of 0.6 percent per day, with bitcoin it was 3.5 percent. This may not mean anything in the long run.

As JPMorgan analysts point out, The beginnings of the modern history of gold as an investment asset were also accompanied by high volatility. This was the late 1970s and early 1980s. Gold ownership was not allowed in the United States until 1974, and it took two decades for institutional investors to invest heavily in it.

Cryptocurrencies in 2021

The year of cryptocurrencies brought thousands of percent gains and sharp falls

Money

Bitcoin-led digital assets have become a tolerated but unquestionable part of the financial world. It is already possible to make money on them through established tools and banks, according to the analysis of newstream.cz. And what awaits cryptocurrencies next year, when some investors predict bitcoin falls to $ 10,000?

Read the article

there

Bitcoin is celebrating thirteen years. Father still unknown and the future? She’s still insecure

Money

Today, it is exactly thirteen years since the cryptographer and programmer performing the pseudonym Satoshi Nakamoto launched the blockchain network and mined the first 50 bitcoins. At the time, it became a party of the general public’s attention. From today’s point of view, however, it was the birth of the entire cryptocurrency industry. What is the path of the most famous cryptocurrency and what future do analysts foretell?

Read the article

The price of oil

Not just gas and oil. It makes everything more expensive, except for gold

Money

Energy commodities are going up by tens of percent, which will lead to further increases in the price of goods and services. But the prices of other commodities are also going up. On the contrary, they lose precious metals and soy products significantly.

Read the article

>>>>>> Read everything about cryptocurrencies here

.

Leave a Comment