Investing in gold has become an increasingly popular trend in recent years, and with the current price of gold hovering around US$2,000 per ounce, it’s easy to understand why. Historically, gold has been a safe-haven asset, a hedge against the uncertainty and volatility of the stock market. While gold prices have been on the rise lately, the key question for investors is whether or not now is a good time to buy.
At the time of writing, gold futures for delivery in December of this year are trading at around US$2,000 per ounce. This is well below the all-time highest price of US$2,070 per ounce, which was hit in 2011. In the last decade, gold prices have moved in a fairly predictable range, going as low as US$1,000 per ounce in early 2018 and then gradually increasing to the current level.
The recent rally in gold prices has been attributed to a number of macroeconomic and geopolitical factors. Weakening global economies are causing central banks to debase their currencies, leading to higher gold prices. China and the US have been caught in a trade and currency war, and gold has become a safe-haven asset for investors who are worried about these global tensions.
So, is now a good time to buy gold? That depends on your investment strategy and risk tolerance. Gold is seen by some as a hedge against inflation and currency depreciation, and by others as a long-term store of value. Those who are looking for short-term gains may decide to wait for a pullback in prices before entering the market, while those who plan to hold gold for the long-term may decide to buy now.
Ultimately, it’s up to the individual investor to decide if gold is the right choice for them. While gold has historically been a safe-haven asset, prices can be subject to rapid and unpredictable swings, and there is no guarantee that gold prices will rise or remain at current levels. Therefore, it is important for investors to understand the risks associated with investing in gold and to make sure that they are comfortable with those risks before entering the market.