It seems that gold price has upturned the downturn. Amid the devastating impacts of COVID-19 pandemic, gold price climbed to a high of USD1,900 per troy ounce. At this level, gold price surpassed the previous high last seen in 2011. Is this a bubble in the making or the start of a multi-year bull run for gold price?
Against the backdrop of soaring gold price, a member enquired what should be the investment strategies that one could undertake amid the downturn. Indeed, it is almost 6 months since the outbreak of the virus. In view of this, I do think that it is time opportune to take stock of the situation and the investment strategies to undertake.
On 2 February 2020, I wrote an article, “Wuhan virus offers three opportunities to build wealth”. In that article, I had doubts that gold price would hit USD1,900 per troy ounce. Instead, I predicted that the on-going uncertainties would lead to an increase of gold price by at least 10%. However, the current form of gold price had proven me wrong. Nevertheless, if investors had bought gold at USD1,580 per troy ounce back in February 2020, they would be sitting on handsome profits now.Read more