Over the past few weeks, some people began dismissing gold as a good asset to own in 2020 and beyond. Most of that sentiment stems forth from COVID-19 vaccine excitement. As reality kicks in, and the vaccine hype quiets down again, the gold price is rebounding strongly.
Don’t Get Excited Over COVID-19 Vaccines yet
It is understandable how so many people want “life to return to normal”. This global pandemic has wreaked havoc and continues to affect the daily lives of billions of people. It is a very unusual and awkward situation, but one that may remain in place for a lot longer than some will like.
Not too long ago, there was a lot of global excitement regarding the COVID-19 vaccines. Multiple pharmaceutical giants claim to offer some degree of immunity to this pandemic. However, there are still plenty of concerns, as none of them received official approval. Moreover, the test results are contradictory in some cases.
Additionally, people have to understand that not everyone will get a vaccine next year. That is, logistically speaking, impossible. Some vaccines require two doses, effectively cutting the supply in half before it even begins. Considering how the first doses go to the weak, elderly, and those providing medical care, consumers will be left out for at least another year to come, if not longer.
Even if all of the above can be taken care of, the effectiveness of these vaccines remains in question. No two humans respond the same to foreign material being injected into their bodies. No one knows if there are long-term consequences associated with any of the current or future vaccines either. There is no reason to risk one’s health until everything has been reviewed, documented, and regulated.
Gold Investors Regain Their Senses
Excitement on such a level will often cloud people’s judgments. As far as gold investors are concerned, a fair few of them sold bullion and flocked to other markets. Slowly but surely, this momentum seems to reverse. After a very rough trading period, gold is seemingly gaining more traction as an investment and a safe haven asset once again.
Despite what some people may claim, our society is still in a very tough spot. Economic uncertainty has run rampant since 2008, and will only grow worse now that all existing flaws have been amplified beyond belief. Combined with the growing number of COVID-19 cases worldwide, and more lockdown measures enforced globally, we may be past the point of no return already.
As such, it remains advised to invest in any asset capable of appreciating in value. Stocks may seem some upward trends, but will often lose ground shortly after. There are only a few safe-haven assets in existence” precious metals and Bitcoin. Investing in those will always be worthwhile, as their yearly performance makes stocks and bonds look like Monopoly.