As we wrote in this article almost a year ago, the price of gold has shot up. At the beginning of August 2020, therefore, it passed the fateful threshold of $ 2,000 per ounce. And remember that one ounce of gold is equivalent to 31.1035 grams, so the cost on the markets is equivalent to approximately 64.3 dollars per gram or, if you prefer, 54 euros. For the world of jewelry, this will obviously mean an increase in the prices of gold rings, necklaces, bracelets and earrings. But also that jewelers will try to offer even lighter or less gold jewels so as not to increase prices too much.
But how long will the gold rush continue? The increase in the price of gold, is linked to the covid-19 epidemic. The worldwide blockade of activities is causing serious trouble to the economy of all countries. For this reason, those who have money to invest focus on gold, which is considered a safe-haven asset, which protects against financial storms. Interest rates at historic lows and uncertainty about the future of share prices also pushes to invest at least a part of assets in gold or financial instruments linked to the yellow metal. Finally, the price of gold has a trend inversely proportional to that of the dollar: when the value of the greenback falls, as happened in this period, the price of lingots rises.
Result: in early 2020, an ounce was valued on the metal market at $ 1,517. In early August it touched $ 2,055, an increase of 35%. But, therefore, gold will still increase in price? In this regard, analysts have two opposing ideas: a group of experts recalls that, based on what happened in the past when conditions of economic were quite similar, the price of gold could go up to $ 3,000.
On the contrary, there are those who suspect that the top has now been reached and that gold will not run for much longer if the central banks will stop with the super-low rate policy. A hint of a return to normal would be enough, in short, to deflate the bubble. But if this happens nobody knows.
