EGU Price Watch (12 Aug) | 3.2% Profit

As of August 12, 2020, at 10:30am, the value of EGU per unit was US$0.6250. At 10:30pm, it rose to US$0.6450. In the case where our users purchase 2000 EGU, they will be paying US$1250. And if they sell 2000 units at US$0.6450, they will be selling at US$1290. Instant profits of US$40 (US$1290 – US$1250) or 3.2% will be achieved.

The recent rise and fall in gold prices are actually in line with the laws of economics. Due to the severe global economic downturn caused by the epidemic, the risk aversion in the market is high. Gold is seen as a safe haven, leading to a surge in prices as investors start investing in gold. When investors start to buy gold, the global capital flows decline. In this case scenario, investors who had made profits by selling at high prices would have resulted in the gold prices to experience a sharp fall.

Unfortunately, at this point in time, the gold price volatility has the greatest impact on contract users, such as users with leveraged futures gold. As Everest Gold users are physical gold investors, the risks are manageable. Therefore, users may consider buying when the gold price falls instead of selling them at low prices. When the gold price is high, users may choose to cash out. Conversely, when the gold price is low, users may consider continuing to hold or add positions. In other words, physical gold investors will not suffer losses by the fluctuation of the gold prices. Instead, they can make a profit if they choose to buy more EGU when the price is low.

In the future, the international gold price will rebound and continue rising higher. Historically, gold prices have fluctuated briefly but have always risen eventually. Furthermore, in the context of the current environment, the most pressing risk is devaluation. Combined with loose liquidity from Central Banks around the world and geopolitical uncertainty, gold’s future remains bullish.

Related Posts

EGU Weekly Digest | Gold rises despite global economic optimism, supported by weakening US dollar and Treasury yields

Review of EGU Price for the Past Week The following is the daily gold price change of Everest Gold (from 1 to 11 April 2021).  Statistics from the past…

EGU Monthly Report | Gold faces setbacks amid strong US dollar and yields, but analysts are hopeful for long-term gains

Review of EGU Price for the Last MonthStatistics from the past 31 days showed that the EGU prices have risen by less than 1% on 20 days…

EGU Weekly Digest | Gold heads for a second weekly rise but is pressured by US Treasury yields spike

Review of EGU Price for the Past Week The following is the daily gold price change of Everest Gold (from 15 to 21 March 2021).  Statistics…

EGU Weekly Digest | Gold recovers from slump but eases again on firmer US yields

Review of EGU Price for the Past Week The following is the daily gold price change of Everest Gold (from 8 to 14 March 2021).  Statistics from…

EGU Weekly Digest | Gold rebounds after a rocky start but soon sees pressure from rising yields

Review of EGU Price for the Past Week The following is the daily gold price change of Everest Gold (from 1 to 7 March 2021). Statistics from the past…

EGU Monthly Report | Anticipating a tsunami: As gold recedes dramatically, investors hold on for a recovery later this year

Review of EGU Price for the Last MonthStatistics from the past 28 days showed that the EGU prices have risen by less than 1% on 16 days and increased…