“Gold is considered a political precious metal because it competes with US government bonds as the main reserve asset. For a long time, gold held back government actions to build up national debt, at least until 1971, when President Nixon lifted the dollar's peg to gold. Since then, it became necessary to manipulate the value of the yellow precious metal, ”the expert shared this opinion.
“Most people who buy gold do not receive a physical precious metal, but only the right to own it,” said Gromen. “Investors can choose what kind of gold they buy. For example, sales of "paper" gold to some extent affect the growth of its price. However, the demand for physical gold in the form of coins and bars affects the pricing of the precious metal even more ”.
Overall, Gromen predicts a continuation of the uptrend in the global gold market in the current year 2021.