During the pandemic, the precious metal has risen more than 30% and exceeds US $ 1,950 an ounce ($ 7.3 million). However, analysts warn of the risks of buying this asset now, and recommend targeting diversified and long-term investments goldco reviews.
In a period of multi-million dollar declines and losses, gold is one of the assets that has appreciated the most in the pandemic: the ounce has gone from US $ 1,500 to more than US $ 1,950 ($ 7.3 million) between March and August 2020, an increase of more than 30%.
Gold has benefited from most of the effects and economic measures that have arisen as a result of the pandemic: it has served both as an active refuge in the midst of the chaos that has been taking over international markets, and as an alternative currency in the midst of a wave of devaluations and growing stimuli from central banks.
In fact, emerging economies are the ones that have suffered the most from the devaluation, especially Argentina: scenes have been seen of citizens withdrawing their savings from banks to buy dollars and precious metals to preserve the value of their resources.
Similar assets have also risen sharply due to the pandemic, since silver has appreciated more than 60% since March and stands at US $ 29 an ounce. Even amid so much chaos in international markets, bitcoin has once again attracted attention: the cryptocurrency has gone from US $ 5,000 to more than US $ 11,000 between April and August 2020.
Goldman Sachs projects that the price of gold will exceed $ 2,300 an ounce in the coming months. And according to the firm, it will continue to be the preferred haven, even on the dollar, as the world economy comes out of the ravages that COVID-19 has caused.
Is it time to invest in gold?
It is clear that an asset with such appreciation will attract the attention of any investor, abroad and in Colombia. However, gold is not among the traditional investment options of Colombians, the closest thing would be to invest in shares of mining companies registered within the Colombian Stock Exchange. So buying gold futures will be something new for non-specialist investors.
To invest directly in gold you can use a stock brokerage, but it is a relatively expensive option and requires high investment amounts. But there is also the option to invest from the comfort of home using platforms such as Interactive Broker or TD Ameritade.
But even if the means exist to buy these types of assets in Colombia, an investment in gold should not be taken lightly, and less a period of high volatility like the current one.
Juan David Ballén, manager of economic research at Casa de Bolsa, explains that “investment in gold is for moderate-aggressive risk profiles. That is, those who prefer safe investments should not buy this type of asset. The other thing to consider is that we are experiencing a very pronounced growth path, and that in general is not sustainable in the short term. But if it is definitely going to be done, a diversified investment strategy is recommended. In other words, it is not recommended to use 100% of the resources to buy gold, other assets must be bought to cover the risk”.
In fact, Diego Franco, president of the Franco Group, warns that “if you are not an expert or have experience, the last thing you should do is send dollars abroad to enter a rally (period of strong increases) that began weeks ago. Gold is for very specific profiles. I would recommend considering better local investments”.