VanEck Gold Strategy Portfolio Manager Joe Foster discusses his 2021 Outlook for the gold market, inflation expectations, risks and more in a conversation with Jenna Dagenhart of Asset TV….(read more)

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Investing in Gold: 2021 Outlook and Inflation Risks

Gold has long been considered a safe haven asset for investors looking to protect their wealth during times of economic uncertainty. In 2020, the global economy faced unprecedented challenges due to the COVID-19 pandemic, leading to volatile stock markets and a flight to safe assets like gold. As we move into 2021, many investors are wondering if gold will continue to be a profitable investment in the face of potential inflation risks.

The outlook for gold in 2021 remains positive, as many experts expect the precious metal to continue to perform well in the current economic climate. Despite a recent dip in gold prices, analysts believe that the long-term fundamentals for gold are strong. Factors such as low interest rates, a weaker US dollar, and ongoing economic stimulus measures are all supportive of gold prices.

One of the main drivers of gold prices in 2021 could be inflation risks. With central banks around the world injecting massive amounts of liquidity into the financial system to combat the economic fallout of the pandemic, there is a concern that this could lead to inflation down the road. Inflation erodes the value of fiat currencies, making gold an attractive hedge against inflation.

Investing in gold can take many forms, from physical bullion to gold mining stocks and exchange-traded funds (ETFs). Physical gold, such as coins and bars, is a popular choice for investors looking to hold a tangible asset. Gold mining stocks, on the other hand, offer exposure to the gold market through companies involved in the exploration and production of gold. ETFs provide a convenient way to invest in gold without the hassle of storing and insuring physical bullion.

When considering investing in gold, it is important to do thorough research and consider your investment goals and risk tolerance. Gold prices can be volatile in the short term, so it is important to have a long-term perspective when investing in the precious metal. Diversifying your portfolio with a mix of assets, including gold, can help mitigate risks and protect your wealth in uncertain times.

In conclusion, investing in gold could be a wise decision in 2021 as a hedge against potential inflation risks and economic uncertainty. With supportive fundamentals and a positive outlook for gold prices, adding gold to your investment portfolio could provide stability and protection in the face of market volatility. Remember to do your due diligence and consult with a financial advisor before making any investment decisions.