The year closing today has not been kind to investors; with inflation coming up on double digits and crypto suffering a major downfall, it is prudent for investors to diversify. These developments have made Gold an attractive investment as a potential haven from the economic downturn. Let’s dive into why we think Gold will be an investor’s choice in 2023.
Buying Gold Hassle Free
According to a report by the World Gold Council, the demand for Gold in the final half of 2022 saw a 30% increase from last year, especially in jewelry. In addition, purchasing Gold is now easier online, and millennials, in their investment prime, are leaning towards this asset that provides good investment security.
This trend of gold purchases by millennials is likely to continue in 2023 because it is now easier to trade Gold safely online and not worry about storage. Platforms, such as American Precious Metals Exchange, have created an online environment to purchase and store these assets hassle-free.
Gold Stocks Trump Shaky Crypto
Historically, Gold has been the investment of choice or a haven for investors in 2022. The precious metal has proved why it has this title. Unfortunately, in the last year, the crypto winter has driven crypto stocks down by almost 60%; this statement means that in 2022, investors lost more than 60% of their crypto assets.
At its peak in the first quarter of 2022, Gold was up by 10% and lost just 1% of its value in 2022. According to a report by Goldman Sachs, Gold is constantly showing heavy resistance in the face of economic turmoil, making it a prime asset for investors who take the long investment route.
The Threat of an Economic Recession
For months, economic professionals have turned to messengers of doom, forecasting an economic recession similar to 2008. In 2008, most assets saw a downturn of up to 50%, and Gold was no exception. In March 2008, a few months before the recession, an ounce of gold cost around $1000.
However, during the 2008 crisis in December, an ounce of Gold dropped to an outstanding $700 per ounce. Gold, as resilient as it is, proved its safe-haven appeal. Gold saw a sharp increase in less than a year to peak at around $1800 per ounce. This resilience makes Gold a go-to stock with the threat of a recession in the corner.
Gold has shown its tooth this year, given the different geopolitical situations and energy scarcity, by staying on top and providing the least amount of losses to investors., We expect Gold to keep up with this trend and continue to be a haven for investors. It is always important to research before you invest in any asset.