The Future of Gold in an Uncertain World: A Peek into the Future

Today’s world is grappling with dozens of global issues. From the ongoing pandemic to global warming, inflation, terrorism, and much more. Though we are much more equipped in terms of science and technology than a hundred years ago, half of the world is still unstable.

Instability, be it due to a natural disaster, terrorism, or a political event, always affects the economies. Even the Dollar, the world’s trading currency, is not immune to the effects of these.

And then comes the gold, a precious metal — once used as a currency by our forefathers. Gold too experiences the effects of global recession, pandemics, and extreme events caused by global warming.

Today, gold has been used as a safe haven and investment by people all around the world. But as the pandemic continues to bring the worst in the world’s most stable regions, there are uncertainties about gold’s future.

In this post, we are going to peek into the future, discuss various scenarios, and where we can expect gold to be in the future.

Gold in the Future

Gold Will Continue to Be a Safe Haven

Even the American dollar couldn’t withstand the tension brought by elections and the pandemic. Yet the gold prices hit a high of $2,067 per ounce (oz) in August 2020. This suggests that gold is likely to be used as a safe haven in the future.

As the currency went into a steep decline, some even reached the lowest value in recent years, people flocked to buy gold. The objective was to buy gold as a safe haven. And this trend will continue in the future as well.

The thing is, we have used gold as a safe haven ever since we have got paper currencies. Preserving the value of your cash in hand gets out of control when the currency declines, so people prefer to keep their assets in the form of gold.

Gold Will Remain a Profitable Investment

Chances are you have some money invested in gold, or at the least, at some point of your life, you have invested in gold. The thing is, gold has been known as a risk-free investment all over the globe.

The level of risk is low as there are no sharp declines overnight, one doesn’t end up losing half of his investment in a matter of hours. In some forms of investment, like stock, the profit or loss is usually too big.

On the other hand, gold’s value increases or decreases at a steady pace. You will not see anyone going broke after investing in gold. One gets enough time to pull out when the trend suggests a constant decline in the coming days.

Hence, gold is likely to remain a profitable investment in the future.

Digital Gold Will be Popular

If you go back a couple of decades, gold investment meant buying physical gold — I mean how else could you buy gold? But as we have entered the era of AI and digital currency, things have changed.

The concept of digital gold has become so popular and common that it’s beaten the physical gold. When people have no time to go out to buy or sell physical gold, owning it in a digital form is a real luxury.

Gold ETF allows you to invest in gold in a similar way you buy shares of a company. However, the chances of loss in this are much lower than in stock.

Digital gold is deemed as the future when it comes to using gold as an investment or safe haven. Physical gold will only be used in the form of jewelry while some might prefer to have it in the form of coins or bullion.

Gold Over Digital Currency

Despite their meteoric rise, the future of digital currencies is still uncertain. With big names like Tesla pulling out their investments from Bitcoin, gold is likely to see a rise in supply and demand. And that would ultimately lead to a rise in gold’s price.

Bitcoin experienced a tremendous amount of fluctuations in recent months. One moment it was up and in the next few days it experienced a constant decline. Gold on the other hand is much stable and accepted worldwide.

Increase in Supply & Demand

Unlike many other sectors, gold’s value was supposed to decline significantly during the pandemic. But for some reason, not only it has survived but the value has increased gradually. The supply and demand seems to be unaffected.

And once the pandemic is over, we are likely to see an increase in supply and demand. Gold’s price is affected by supply and demand, once it’s up, the value of gold also goes up.

Because of the uncertainty, investors are more careful than ever before about their investment ventures. They prefer something that’s preferable and can be dealt with easily.

Bottomline

The future of gold seems bright. All the factors that affect its value indicate an increase in the value of gold. And with digital gold, it will become a lot easier for people to invest in it. With flexible investment and less risk, more and more people will be confident about buying gold.