Solidarity with those who suffer is one thing. The need or, more simply, the desire for wealth is another. So when war broke out in Ukraine, many wondered: is it time to invest in gold? Should you buy bullion? Or, perhaps, to buy gold jewelry that can be revalued over time? All legitimate questions. But as always, you have to be careful. Investing in gold is not, as many think, a safe investment. It is not certain that gold will revalue over time nor that the war in Ukraine must necessarily push the prices of the yellow metal.
Confirmation of the caution comes from the analysis of the largest Italian bank, Intesa Sanpaolo. The bank’s study center is particularly attentive not only to the trend of the economy as a whole, but also to that of raw materials, including the most precious ones. Like them.
It will perhaps therefore come as a surprise to many to discover that despite the ongoing war, according to the credit institution, no further increase in gold prices is in sight. In reverse. According to the analysis by Daniela Corsini, who boasts a long-term assignment as Chartered Financial Analyst, Senior Economist, Rates, FX & Commodities Research at Intesa Sanpaolo, gold and silver will see prices slow down and even fall. Conversely, palladium and platinum are expected to have rising prices. An indication that is addressed to those who want to invest in precious metals, but also to those who, like jewelers, use gold and silver as raw materials for their work.
According to the analysis by Intesa Sanpaolo, therefore, on average an ounce of gold in 2022 will be quoted on average $ 1720 and will drop to $ 1650 in 2023. The causes are different, but the value of gold should be pushed downwards the expected rise in interest rates in the United States, which could prompt investors to focus on Treasury bonds (US government bonds). Not only. The aftermath of the pandemic still weighs on the price of gold. In the last year and a half, the analyst explains, many marriages have been postponed in India due to the covid. With its purchase of jewelry. Then, however, there was a recovery that pushed the demand for gold. In short, if you are hoping to buy gold or, perhaps, financial products related to gold, be careful. Maybe it will be a good deal to wait for the prices to drop, at least according to the analysis of Intesa Sanpaolo.
