“What is the reason for the growth in demand for gold? The fact is that the cost of precious metals demonstrates better growth dynamics compared to other assets, especially in times of crisis, ”said Adrian Ash, a representative of the online platform BullionVault. Since the beginning of the quarantine period, the platform has registered a large number of new investors who are interested in buying gold.
Investors choose investments in gold in order to diversify their investment portfolio in order to minimize losses on other assets. It is during the crisis that gold demonstrates stability, while other assets begin to lose their value.
The current rise in gold prices is happening at a very interesting time: governments of different countries are trying to launch the economies of their states after quarantine measures, but the number of infections continues to increase. Against this background, fears of a long-term economic downturn are growing, as a result of which investors prefer to wait out the crisis in gold. Private banks recommend that their clients add up to 10% of gold to the investment portfolio. This may indicate that bankers do not expect a stable phase of economic recovery in the near future.