Is today a good time to invest in gold?

Charles Reed Cagle recommends that, Gold has long been a popular choice for investors seeking shelter during uncertain times. Although precious metal has established itself as a trustworthy store of wealth over time, is it still a wise choice for investments given the present state of the economy?

Over the previous ten years, gold prices have fluctuated wildly. Gold's price rose to an all-time high of $1,900 per ounce in 2011. Gold's price, nevertheless, has been on the decline ever since, hitting a low of $1,050 per ounce in 2015. Although the price has varied since then, it has not risen to the levels of 2011.

The strengthening of the US dollar is one of the primary causes of the drop in the price of gold. Because gold is valued in dollars, it decreases as the dollar grows stronger. Furthermore, the US economy has been doing well, which has caused investors to turn away from gold and toward riskier investments like equities.

However, a few factors still make gold a viable investment choice in the current financial environment. The ongoing COVID-19 epidemic and geopolitical unrest are only two of the difficulties the world economy is now dealing with, which might cause market volatility. Gold is frequently seen as a haven asset during uncertain times because of its propensity to keep its value and even rise in price.

Second, central banks worldwide continue to own gold as part of their foreign exchange reserves. The World Gold Council reports that central banks increased their gold reserves by 650 tonnes in 2021, the highest annual rise in the previous 50 years. This shows that gold is still a valuable asset that central banks should own.

In conclusion, even if the price of gold has not yet surpassed the 2011 highs, there are still a few reasons why it could be a wise investment choice given the present state of the economy. But like with any investment, it's crucial to do extensive research and consult a specialist before making any decisions.