When Covid-19 came knocking, most investors were thrown into a panic mode. Some sold their shares as they rushed to find a haven to secure their wealth. Some rushed for the US dollar but the wise rushed for the gold.
For centuries, gold has remained one of the most precious currencies in the world. It is the only “currency” that has managed to wade through global recessions. It is the one commodity that has consistently assured secure wealth.
The highest recorded price of gold was in August 2020 when it hit 2,067.15 US dollars per ounce. Gold’s breach of the significant 2,000 USD price level in mid-2020 was undoubtedly due in large part to economic uncertainty caused by the sweeping COVID-19 pandemic.
A safe haven in turmoil
On Tuesday, 8th March 2021, gold broke decisively above the 2,000-dollar mark an ounce, marching toward the all-time high hit in August 2020 as geopolitical and economic uncertainties surrounding the Russia-Ukraine war lifted demand for the safe-haven metal.
The ongoing conflict in Ukraine showed no signs of de-escalation, shaking up commodity markets because Russia is such a heavyweight supplier in so many areas and a major gold producer.
Surging commodity prices also fueled inflationary and growth concerns, presenting fresh challenges to central banks. The Russia-Ukraine crisis has revived gold’s demand as a safe haven, which makes it a perfect time to invest in gold funds.
The demand for gold is expected to continue rising as a result of the conflict between the two countries and investors will continue seeking safe, stable asset classes amid the volatile financial markets.
Investors in both exchange-traded funds and futures are now upping their bets in gold. Inflows into ETFs last week took holdings to the most in almost a year, while the net-long position of hedge funds trading the Comex is now the highest since August 2020.
Spot gold rose 0.7 percent to $1,984.57 an ounce at 12:22 p.m. in London, after earlier climbing to the highest since August 2020. The Bloomberg Dollar Spot Index rose 0.5 percent. Silver steadied, platinum advanced and palladium surged more than 14 percent to a record.
In Kenya, investors purchased gold ETFs worth 91.7 million shillings on 2nd March 2022 as they moved to hedge against volatility in global markets.
The Golden Opportunity…
What these developments mean is that investing in gold funds, including gold ETFs is currently the most lucrative type of investing. This is not to mention how it is affordable and easier for first-time investors to access a wider range of investment options previously only available to select investors.
Taking this chance to invest in gold funds allows you to benefit from gold’s role as a diversifier amid ballooning budget deficits, inflationary pressures, and potential market corrections.
You will also get to enjoy additional support, as gold consumption will likely benefit from the nascent economic recovery, especially in emerging markets.
The best part about investing in gold funds is that, unlike physical gold, they can be purchased like shares on a stock exchange. Gold ETFs allow investors to access gold while avoiding the costs and inconvenience of markups, storage costs, and security risks of holding physical gold.
Luckily, at Ndovu we are a regulated online investment platform that has simplified the process of investing in Gold. We provide smart, simple, and affordable investment solutions by investing your money in the Gold ETF. Using cutting-edge technology and expert financial advisors, we provide the right tools to help you build wealth.