If you haven’t heard, 2019 was a really good year for gold – bullion’s price surged to 15%, marking its best year since 2010. Gold prices peaked in 2019 at $1557 USD and have even seen an increase in 2020 already, peaking at $1583.50 USD on January 30.
It can be difficult to predict the worth of gold, especially because there are so many determining factors. As a crisis commodity, the value of gold is often determined by the current geopolitical and economic climate. It’s also influenced by the predictions that people make about how much it’ll be worth.
That being said, many are anticipating that 2020 will be a good year for gold as U.S.-China relations remain uncertain. There’s also been speculation of an impending recession due to a weakening U.S. economy and hefty consumer debt.
On top of all this, many nations have decided to ditch the dollar and are now exploring options for trading in gold. Meanwhile, countries like Russia are increasing their mining efforts and hoarding gold, upping their reserves.
All of these factors contribute to why many experts and investors anticipate gold to rise in 2020.
Is it Better to Play it Safe?
While things seem to indicate that gold prices will rise, you can never really know for sure. There are others who believe, for instance, that gold will instead drop and level-out over 2020.
If you aren’t really certain about what to do (wait or sell) it might be better to sell sooner than later while spot prices are still relatively high. Selling gold can be an easy process as long as you go to a reputable gold buyer like Muzeum. They are Canada’s most trusted brand for cashing in on gold and can also offer you advice about whether or not it’s a good time to sell.
They offer free evaluations and have a reputation of integrity and trust. When you visit their store, you can rest easy knowing that they will get you the best prices for your gold and silver.
Gold is a Good Investment
Despite how difficult it can be to predict the worth of gold, this precious metal is generally considered a good investment. That’s because no matter how its price fluctuates, it will always be worth something – unlike something like stocks that can completely lose its value.
This is because gold has retained value throughout human history as a precious metal with a variety of uses. It also has a history of being used to pass on wealth from one generation to the next. As a physical asset, it is something that can be bought and sold safely and also reliably stored.
Stocks, on the other hand, are valued based on supply and demand. The better a company is doing, the more people want to buy their stocks, and the more expensive they become. But if a company does poorly, then it is possible for their stocks to completely lose all value.
That’s why it’s recommended that you have a diverse investment portfolio, and gold is often seen as a vital part of one.