Gold broke the $2,000 mark and hit all time high

Aug 5, 2020

Gold hit $2,000 an ounce on Tuesday, a milestone that caps a record-breaking rally driven by depressed bond yields and fears over the impact of Covid-19 on the global economy. People tend to hold and buy gold in times of uncertainty just like during the financial crisis which peaked at 2011. The reason is because gold is view as a safe haven because as the world’s earliest form of currency, gold’s physical properties have meant it has long been considered a reliable store of value. It is widely available enough to trade but is in finite supply, so is rare enough to be considered valuable and unlike some metals it is not corrosive, making it durable. Therefore, I usually hold around 10-20% of my portfolio in gold as a hedge incase market becomes too volatile or dips. But instead of buying physical gold, you can buy gold etfs like SPDR Gold MiniShares (GLDM) which has higher liquidity. Gold etfs are also known as paper gold and essentially, the company buy the gold and hold for u at a low cost. You can read up more on it online if you are considering gold in your portfolio.