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Why are Investors Bullish on Gold? GSI Exchange Explains

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The recent global pandemic saw gold prices reach record highs in 2020. Stocks, bonds, and real estate investments seldom get the same spotlight. Precious metals seller GSI Exchange enjoys a prestigious position on the list of the safest online gold sellers in the world. In a candid chat, a top executive at the company explained why gold has always remained a favorite amongst investors from all over the globe.

Numerous big names in the industry are bullish on gold, with most recommending having physical gold close to you. However, given that the current conditions are rife with unfavorable factors, majorly inflation, investors are returning to their roots and urging everyone to follow suit.

GSI Exchange notes the sudden shift in gold purchasing, with buyers closely monitoring daily prices, bidding their time in anticipation of a slight price drop. The moment they notice even a small decrease, buyers seem to be going all in, explains the company.

Dollar instability is also contributing to the lure of buying gold. Not to mention, physical gold is a liquid asset. Against investments like, say, SIPs, an investment in gold seems more convenient. Plus, there never appears to be a shortage of a margin for expansion when it comes to gold, specifically gold mining. This is a definite contributing factor in its heightened demand – the ability to supply without a hitch has undoubtedly worked in its favor.

Lastly, most investors welcome this chance at portfolio diversification. Until recently, they had their hands full chasing the trending investments like crypto. But as they witnessed the crash and burns of such investments, seasoned investors realized the potential of traditional investment forms.

However, readers and customers should be aware that precious metal markets have inherent risks, and could be affected by, including without limitation, economic conditions, political events, and speculative activities.

 

Based in LA, Alice Blake is a senior reporter for Kivo Daily. She primarily covers entrepreneurs.

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