Gold prices are expected to go up in 2021 by people. So, some of you asking me, Should we invest in gold because It is expected that Gold price will increase in 2021. Gold prices have been on the rise in the last 2 years. In the last 5 years, gold prices have increased by almost 100%.
By seeing the good returns by gold. People are looking to invest in it. But, We will see Gold price will increase in 2021 or not and share the truth of Gold investment.
Why Gold Prices are expected to rise in 2021 in India?
Gold prices are expected to rise because the Gold reaction is different from another financial market. Some of us friend also tells me, why the gold price will increase other investment such as stock market, commodity market, the currency market is decreasing then why? Let’s see,
As I mentioned above Gold reaction is different from others. Some reasons are given below why Gold price can increase in 2021.
Some good news is coming about the vaccine. But, As we know the vaccine is not working properly. According to the latest news of BBC, 23 peoples has been die due to the vaccine. So, It is a very big failure of the American vaccine. Due to this situation many people afraid to get vaccines.
War situation between India & China
While seeing the history of gold, I have noticed that In war situations the prices of Gold increased suddenly. Some of the positive news has come from India & China board. But also, We couldn’t say anything because, As we know the Latest India under Narendra Modi is very strong.
The Indian and Indian army is ready to war and the second big reason is that the prime of India is now very strong. Any reaction from both India and China now it will return to war.
China relationship between other countries
China have very bad relationship between the other countries. Their is no need to explain anything more about this. Almost all countries are against China due to covid-19. Bad news for world and India.
Gold reacts against the stock market and According to the latest situation of the stock market of all countries is very bad. It seen like the stock market is on trigger Bomb. Anytime it can ballast.
This is know as the main indictor to know that the Gold will increase or decrease in the future.
Inflation has raised by 6.5%. It means the price of goods and services has increased. So, The gold price will increase in 2021. To bet the Inflation you should Invest your money in Index Fund, Gold, Mutual Funds, Stock market, and You can also deposit in Fixed deposit or recurring
Low supply of Gold
There is a low supply of gold due to the covid-19 pandemic. Due to covid-19, the supply of gold has reduced in the last 6-9 months. While this situation would improve in the coming months, this might also put further pressure on the gold price to rise.
Fall in Investment
In this situation, No one is interest to make new Investments.
History of Gold Prices
Here is the history of gold prices in the last 20 years per 10 grams. One should note that average prices may vary by city.
2000 – Rs 4,400
2005 – Rs 7,000
2010 – Rs 18,500
2015 – Rs 26,343
2020 end – Rs 51,500
By seeing the above data we can say that Gold has given 12x return on investment in the last 20 years. We can say that Gold has given 60% returns on investment each year and according to me, Gold returns on investment is a good return.
Should you invest in Gold in 2021
By seeing the above article you have got some idea that what will I say. However, Let me explain.
I can say that Gold investment in this situation is best. By seeing that returns of last 20 years we can say that gold price will increase in 2021.
All these factors indicate that gold prices are expected to increase in 2021. Like I showed in our earlier articles, Investing in gold is a good idea. If you still want to change your investment portfolio then you can add Gold, you can invest 5% to 10% in gold.
You can consider investing in sovereign gold bonds, gold funds, and gold ETFs. In this situation, You can also invest around 15% in gold.
It can be the best time to consider a gold as an investment. The Indian history shows the important of gold. Their will be some reason behind that. The gold is safest investment because, Almost all countries have their gold reserve. So, this makes the gold very safe investment.
I hope you have liked this article. So, If you have any question, feedback, or recommendation then you can leave in the comment box below.