Gold’s strong start to the new year
Gold has raced off the starting blocks for 2021, hitting a two-month high on Monday.
Trading around $1,946/oz earlier this week, the gold price remains short of the all-time high achieved last August, when it hit an intra-day high of $2,075/oz.
Despite the dip since then gold investors are sitting on tidy profits. Gold rose by 22% in 2020 and has gained 65% since August 2018. It faces two key issues in 2021. Firstly, the vaccines, which have taken some of the shine off gold, says The Times.
As a safe-haven asset, the metal attracts less attention when the economy is doing well, as is expected this year. Investment bank analysts are cautious, with HSBC predicting gold will finish 2021 at $1,907; Bank of America predicts $2,060.
Subscribe to MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE
Sign up to Money Morning
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Secondly, bitcoin has emerged as an alternative hedge against inflation. The cryptocurrency’s surge may be diverting funds that would otherwise flow into precious metals, Delano Saporu of New Street Advisors Group told CNBC’s Lizzy Gurdus. Investors looking for a hedge against government currency debasement now have more options to choose from.
Still, if 2021 brings the inflationary scare MoneyWeek has been fretting about for some time, then gold is likely to gain new impetus. This week’s jump is giving gold bugs hope. A store of wealth for thousands of years, there is still nothing quite like gold.
-
Private school fees soar and VAT threat looms – what does it mean for you?
Rising private school fees could see more than one in five parents pull their children out of their current school. Before you remortgage, move house or look to grandparents for help, here’s what you need to know.
By Katie Williams Published
-
Best and worst UK banks for online banking revealed
When it comes to keeping your money safe, not all banks are equal. We reveal the best and worst banks for online banking when it comes to protecting your money from scams
By Oojal Dhanjal Published
-
AstraZeneca CEO’s £1.8mn pay rise approved despite shareholder opposition
AstraZeneca hiked its dividend to persuade shareholders to accept CEO Pascal Soriot’s pay rise. Is he worth his salary?
By Dr Matthew Partridge Published
-
Adidas, Nike or Jordans - could collectable trainers make you rich?
The right pair of trainers can fetch six figures. Here's how you can start collecting vintage Adidas, Nike or Jordans now
By Chris Carter Published
-
The industry at the heart of global technology
The semiconductor industry powers key trends such as artificial intelligence, says Rupert Hargreaves
By Rupert Hargreaves Published
-
Three emerging Asian markets to invest in
Professional investor Chetan Sehgal of Templeton Emerging Markets Investment Trust tells us where he’d put his money
By Chetan Sehgal Published
-
What to consider before investing in small-cap indexes
Small-cap index trackers show why your choice of benchmark can make a large difference to long-term returns
By Cris Sholto Heaton Published
-
Why space investments are the way to go for investors
Space investments will change our world beyond recognition, UK investors should take note
By Merryn Somerset Webb Published
-
Time to tap into Africa’s mobile money boom
Favourable demographics have put Africa on the path to growth when it comes to mobile money and digital banking
By Rupert Hargreaves Published
-
M&S is back in fashion: but how long can this success last?
M&S has exceeded expectations in the past few years, but can it keep up the momentum?
By Rupert Hargreaves Published