The chart below shows the price of gold. It was at $1,500 USD at the start of the year. After 8 months, the price has gone up to $1,960, an increase of 30%.
Some people think that gold price will continue to increase because the value of the USD and other currencies will drop due to negative interest rate and the massive printing of money that is not backed by any assets. They refer to these money as fiat currencies.
Many analysts also expect the stock markets to crash during the next two months, due to the lockdown of the economy, the large numbers of unemployed people, closure of businesses and the economic recession.
When stocks fall, will investors rush to buy gold?
I give my views here.
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