Surely you have noticed that the price of gold has risen sharply. But have you thought about why?
Let’s take a look at why the price of gold is rising like this.
The third peak since 1971
If you’ve ever invested in gold, you know it doesn’t pay any interest. However, at a time of pandemic, when many investment instruments have fallen to zero or worse, this disadvantage is completely eliminated. Every investor will tell you that zero interest is better than negative one and that is true.
Gold is considered as a secure investment. It is a safeguard for uncertain times and a hedge against inflation. Many people are investing in gold because of the falling dollar and the growing tension between the United States and China and given the second wave of the pandemic, these uncertainties will not go away any time soon.
How to protect yourself when it is not possible with gold?
As well-informed people have begun to invest heavily in physical gold, other ways to protect yourself in these uncertain times may be needed. An option is to invest in cryptocurrencies, which also has many advantages.
One of the benefits is that it is not a physical asset. You simply store the cryptocurrency in your cryptocurrency wallet and you don’t have to worry about it being taken by someone else. Nowadays, there are many ways to invest in cryptocurrencies, but you need to study a lot of information and be careful about what you are going to invest in.
Due to the pandemic, we have reached a difficult time, and it can be seen more and more that the financial system that has worked here for many years is falling apart and does not provide us with the support we need. If you have little opportunity and want to protect yourself from the crisis and inflation, start investing. Just remember the golden rule of investing: invest only as much as you can afford to lose.
Tip: If you would like to know more about trading cryptocurrencies, we are preparing a series of webinars for beginner traders. Follow us to learn more.