FX.co ★ Billionaires prefer gold to US dollar

Investors with the wealth exceeding hundreds of billions of dollars are again ahead of other market participants. Thus, billionaires have started buying gold already in April. The precious metal is confidently gaining in value and since the beginning of the year, has hit new record highs.

At the moment, there is almost no doubt that gold will break the level of $1,920 per a troy ounce. It will be the highest price ever recorded. Due to the current rally gold has overshadowed the US dollar, its main rival. Moreover, gold prices have more than enough reasons for a further rise. Thus, gold is pushed up by a flight-to-safety caused by the coronavirus pandemic and political risks in the US and the whole world. Even amid the current prices, gold remains extremely attractive for investors.

“Gold bugs applaud the precious metal as an insurance policy against financial fiddling by monetary authorities that will stoke runaway inflation one of these days; naysayers deride it as nothing better than a pet rock,” journalists at Bloomberg said. However, according to the Invesco survey, central banks have certainly been putting more of their reserves into gold in recent years. That interest has further to run. “Some 18% of central banks plan to increase their gold holdings in the coming year, while 23% of sovereign funds intend to boost their exposure,” analysts at Bloomberg are sure.