The carat or the stick? Gold's upward trajectory gives investors a reason to boost holdings

Metal performance was on the up pre-pandemic

After gold's meteoric rise over the past two years, investors are left questioning the outlook for precious metals following the announced Pfizer and Moderna vaccines.

Put simply, this does not change the investment thesis. It is important to focus on what the drivers of gold were and how have they changed. Gold had already risen from $1,200/oz in 2018 to $1,680/oz in March 2020, before Covid-19 affected everyday life in the West. The primary driver of gold's ascension was low interest rates and increasing government debt, which has only accelerated under extensive Covid-19 stimulus plans and lockdowns. Diwali 2020: A non-event for the Asian gold market In the West this is painful, but in emerging markets (EM) this is catastrophic. Borrowin...