Do a little research... The COVID 19 pandemic has had a dramatic effect on all investments...

Do a little research... The COVID 19 pandemic has had a dramatic effect on all investments especially Gold. What direction is the value of Gold expected to go in as this pandemic continues? Does this make it a good or bad investment? Would you include Gold as a long term investment in your own portfolio in 2020? Why? or Why not? explain in detail.

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Expert Solution

The direction of the price of gold will be going upward because gold is a safe investment asset and it will be preferred at the time of the crisis because there is a high amount of volatility in the equities market and at such turbulent time, investors are always looking for investment into defensive and safe asset classes and gold is providing with that safe investment quotient and hence it will mean that investors are going to switch to Gold if an impending recession unfolds, so we can see that the prices of gold has broken the channel and given a Breakout on the technical charts and it is expected to go upward as there will be a crisis unfolding.

Yes, it makes a good investment and it is also going to diversify the overall investment portfolio and I am going to include more gold as a major portion of my asset class and I am also holding it and I have gained almost 20% on the investment on the gold and I am expecting it to go above $2000 and sustain beyond that and I am very bullish because I am expecting the equity prices to crash as the underlying economic situations are not that great and stock prices cannot go up always even the economy is crashing so I have gold as my major investment in my portfolio.

jeff jeffy answered 1 year ago

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