Supply and Demand Analysis of the Gold Market 2021

Gold is an eternal value. Since ancient times, it has remained the standard for determining the value of many other assets. And gold itself is always in high demand. Today we are taking a closer look at the supply and demand prospects for the gold market in 2021.

So let's get started!

Last year was remarkable for the rise in gold prices: after a long plateau, when the price of the precious metal remained unchanged for a long time, the "golden age" expected by gold holders has finally begun. This situation was quite natural: in the period of economic growth and development of alternative ways of investing, gold lost its popularity, because assets such as digital currencies, crypto and others were at their peak. At the same time gold has not become depreciated, simply the interest in it remained with those who always think ahead - and such investors are not the majority.

What is different about the year 2021?

The beginning of the global changes was the very lockdown that made people turn back to their backgrounds, showing the vulnerability of certain assets. Who needs bitcoins if you lose your life to Covid-19? The same goes for other cash-intensive assets. And only gold remains worthy of its own position:

Yes, it does not serve as the currency now.

Yes, it is not worth as much as bitcoin.

Yes, it is considered an old-fashioned asset.

But gold is forever!

As already shown by analytics, there are simply no specific opportunities for the active development of the offline market: the next wave of the pandemic is coming, which means that online trading remains relevant and in demand. Especially when it comes to gold, one of the most rigid assets.

How the price of gold varies in 2021

Last year, people were incredibly frightened by the pandemic. During that time, bonds, stocks, and bitcoins lost in value. But gold has not. The reason is simple: gold is an all time asset buried in the depths of consciousness. It is a symbol of wealth, and no matter how much you earn, buying gold as a gift is definitely not a rare thing in the world. Meanwhile, the high quality and purity of the metal must be checked in any case.

So what happened to the price of gold?

The shocking thing is that the price of gold is 46% higher this year than it was in March 2020. The lockdown was a factor, urging everyone to turn towards traditional values, including investing in gold. The second factor that caused the surge in price was stability of the precious metal. As stability is something rare today, gold has become a sign of permanence. At least nobody will devalue the metal at all. And it's guaranteed to bring you profit after the purchase.

By the way, gold as an investment also has its own distinct characteristics. In particular, keep an eye on the metal's assay, pay attention to the carats and pricing: too low can be a fake, but buying gold for its weight worth millions of dollars is not appropriate either. If you want to get the fullest information about gold as an investment, consult a professional. At Golden Way, we are always ready to help you with your gold investment and we make the expensive metal ourselves that might lead you to success.