Gold : Will it continue to rise or is this the peak?
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Recently, investment in gold has grown significantly. Investors are concerned about the global economic slowdown and the volatility stemming from US President Donald Trump’s trade war policies, which have impacted many of America’s trading partners through increased import tariffs. Other factors like currency fluctuations and ongoing conflicts in Ukraine and the Middle East have also contributed to this trend.
Gold is widely seen as a safe-haven asset. In times of investment uncertainty, investors tend to move their funds back into gold. This, along with increased purchases of gold by central banks around the world, has become a key factor in driving up its price.
Gold is considered a safe-haven asset for several reasons
A safe-haven asset is an investment that tends to retain its value or even appreciate during periods of economic turmoil or market downturns. It is also an asset that is not negatively correlated with the overall economy.
Investors believe gold is a low-risk asset, particularly during times of high economic volatility or crisis. The historical returns on gold have been outstanding compared to riskier assets. During non-crisis periods, gold prices are less volatile, and gold has high liquidity, as it is an asset that can be bought and sold in any country worldwide.
In addition to gold, other assets considered safe havens include cash, government bonds, and debt instruments issued by public organizations.
Why Gold Is Still an Attractive Investment
- Gold is particularly appealing as an investment during times of economic volatility or crisis. Historical performance shows that during crises, gold has often provided positive returns with low volatility. This is because investors tend to increase their holdings of gold during uncertain periods, driving up its price.
- Gold serves as an excellent hedge against inflation. This is because the price of gold has historically shown a positive correlation with inflation rates. When inflation trends upward, gold investments have the potential to deliver strong returns and help investors outpace the rising cost of goods and services.
- Gold has high liquidity because it is a valuable asset that is globally recognized and accepted for trade. If you need cash, you can sell your gold immediately.
- ทองคำช่วยในการ กระจายความเสี่ยงของพอร์ต (Portfolio Diversification) เนื่องจากราคาของทองคำมีความสัมพันธ์กับราคาหุ้นในระดับที่ต่ำ การมีทองคำในพอร์ตจึงช่วยลดความผันผวนโดยรวมได้
- เมื่อเกิดวิกฤตเศรษฐกิจและตลาดหุ้นตกต่ำ ราคาทองคำมักจะสวนทางและปรับตัวสูงขึ้น ทำให้สามารถสร้างผลตอบแทนที่เป็นบวกให้กับพอร์ตได้ ซึ่งช่วยให้ผลตอบแทนเฉลี่ยของพอร์ตโดยรวมดีขึ้นและช่วยรักษามูลค่าการลงทุนไว้ได้
There has been a clear, long-term upward trend in the price of gold. Over the past 20 years (2005-2025), the price of gold per ounce has increased several times over, from around $513 in 2005 to more than $1,800 in 2020, and it has recently surpassed $3,000 in the last week.
In the most recent five-year period, the price of gold has seen a remarkable surge. From 2019 to early 2024, the price of gold rose by over 80%, outperforming other safe-haven assets like government bonds and the US dollar.
