by Virginia Fidler, Gold Telegraph:

Gold is currently trading around $1,800.00. Trading near 8-year highs. Investors are piling into gold as fiscal and monetary policy continues to take debt to unprecedented levels.

Gold has always been traditionally a safe investment and a hedge against inflation. It has maintained its reputation during one of the worst economic downturns in history. Previously, most gold buyers, however, have come from China and India, two of the countries that have helped boost gold prices for almost a decade. Due to the pandemic, these countries are no longer making such large investments. China’s gold purchases are expected to drop by 23 percent. India, a country where even the poor own gold for jewelry, will likely purchase 36 percent less gold in 2020. The sky-high prices, which are still rising, have deterred many buyers from the more traditional gold-buying countries, whose economies are still suffering from lockdowns.

Of course, should China and India return to their old gold-buying habits, the price will soar way past previous record highs. In the meantime, both US and European investors are buying gold as quickly as they can to preserve their wealth. 

The price of gold has increased by 17 percent since the pandemic and is up 28 percent from a year ago, while the value of the dollar has dropped by 3 percent. Gold companies are experiencing a 50 percent profit over a year ago. For anyone wishing to come out on the right side of this pandemic, purchasing gold makes sense, as fiat currencies continue to lose value rapidly against gold as debt levels continue to skyrocket.

GOLD VS FIAT CURRENCIES THE PAST 6 MONTHS: