Gold continues to shine amid COVID-19 marred 2020

Despite the global economic uncertainty, gold has remained the only metal that proved profitable during the Coronavirus pandemic, and economists believe that it will remain the best investment option in the upcoming 2021 a well.

Gold coin prices have risen 24 percent this year during the COVID-19 crisis and since 2010 gold is considered the most profitable metal.

According to the World Gold Council (WGC), the value of gold is due to the demand for resources, it is used for investment, it is a safe asset and a luxurious metal, it is a component of technology, while historically gold has proven that it is capable to preserves its value and status.

According to the WGC, gold can expand any investment portfolio in four main ways, providing long-term returns and minimizing losses when the market is in crisis. It provides liquidity without any debt risk and ultimately improves the overall performance of the portfolio.

Gold prices rose to record levels in August when the price of gold per ounce reached USD 2,075.

Givani, a UBS analyst, says the cumulative effects of a weaker dollar, negative real rates, low yields and uncertainty caused by a new strain of the coronavirus are helping gold's value.

Experts are also questioning whether gold could provide investors with a return in 2021. Mazen al-Sudairi, head of research at Riyadh-based financial services company Al-Rajhi Capital, says global gold consumption has been 4,500 tonnes a year over the past decade. That is why the price of gold has risen since March 2020.

Gold prices have fallen below since hitting record highs in August. According to Sudairi, once the downward trend in gold prices stops and its direction changes, the environment of rising inflation and low interest rates will also help gold prices.

Vijay Walisha, chief investment officer at Dubai-based Century Financial, said gold prices rose sharply in 2020. He said that demand for gold also depends on positive developments such as the development of the COVID-19 vaccine and hopes for economic recovery.

However, gold coins have long been favored, as leading central banks continue to make offers to handle economies.