Close Menu
WorldNewSite
    Facebook X (Twitter) Instagram
    WorldNewSite
    • Home
    • Business
    • Technology
    • Health
    • Education
    • Social Media
    • Fashion
    • Law
    • Travel
    WorldNewSite
    Home»Business»Gold in Uncertain Times
    Business

    Gold in Uncertain Times

    HarrisonBy HarrisonApril 26, 2022Updated:June 30, 2022No Comments4 Mins Read
    Share

    In the world of investments, gold is associated with inflation. It is the one investment asset that goes up in value when every other asset seems to be struggling. High inflation drives the price of gold high and because inflation goes up and down, it causes the gold price to swing up and down. Inflation is almost always affected by government and central bank policy errors that often result in the overstimulation of the economy whilst trying to either allows certain recoveries or create booms in certain sectors.

    In the 70s the gold standard was abolished. This meant that the value of the U.S dollar and other major currencies would no longer be coupled with gold. What that happened the value of major currencies like the dollar would swing high or low based on the amount of paper money being printed. The problem is that when more paper currency is printed and put into circulation the strength of the currency is eroded and the chances of inflation rising increase.

    The world looks to the U.S dollar as a base currency but gold became a barometer of the prevailing economy. People bought more gold in the 70 after the end of the gold standard not only because the inflation data was alarming then but because there was a growing perception that the governments of the day was not taking the right decisions to reign inflation in. people began to trust gold more to protect wealth against the cost of living rising uncontrollably.

    Whilst the price of gold in Australia drifted for a couple of years and the 1980 peak, the 2008 global financial crisis and the policy mistakes that a lot of governments took were enough to push the price of gold to all time levels between 2000 and 2010. There was a fear that governments and central banks were not taking good decisions that would stimulate growth and stem the possible collapse of the major European currency in industrialized countries. In September of 2011, the price of gold peaked at $1,900 and then began a slow decline for a couple of years. A few more years later, pessimism over the world economy returned allowing the price of gold to rise again.

    In the years leading up to 2020, the gold price doubled as Brexit and COVID-19 created high levels of uncertainty and volatility in the economy. In the summer of 2020, the price of gold hit record highs. It peaked at $ 2074/oz in August 2020 and the proceeded to level out in the months after that. To anyone looking at the gold price in the short term, the stability of the prices or the fact that it stood at $1,700 after bottoming out of the $2000 an ounce does not make gold look like a high return investment. However compared to where the price of gold was in 2015, the precious metal has managed to withstand a lot of negative sentiment since then.

    As the global economy attempts to recover from the pandemic concerns are turning to Russia’s invasion of the Ukraine and how the war could further destabilize the global economy once again. That is not the only concern. A lot of industries are struggling to open up the bottlenecks in the supply chain of many materials caused by lockdowns and Brexit. These have put pressure on inflation and fear that most people would be unable to access credit or put their money in property or stocks and bonds. Rising inflation will make life harder but it will mean that this is once again the best time to look at the gold market closely.

    If you’re a big fan of digital stories, you can download your favorite stories from Storiesdown offline. All you need to do is log into your Storiesdown account, enter your username and profile URL, and then tap “profile.” Once you’ve found the Story you’re looking for, select “Download” and choose a destination folder.

    If you are looking to view the stories on Instagram, you can use the Glassagram viewer. Simply type in your username and the URL of the Instagram account you wish to view. Once you have entered this, the viewer will display the contents of the public account.

    Harrison
    • Website

    Related Posts

    How Tax Concept Impacts Real Estate Transactions and Property Investments

    March 26, 2025

    How Screen Printing Companies Handle Large-Scale Orders

    January 23, 2025

    Sihoo Doro C300 Review: The Perfect Christmas Office Chair

    December 16, 2024
    Recent Posts

    Top Reasons to Employ Certified Experts for Water Tank Cleaning

    May 16, 2025

    How to Style Sarees for Summer Weddings Without Compromising Comfort

    May 10, 2025

    Exploring The Role Of Food And Beverage Manufacturing In Shaping The Future Of Indian Cuisine

    May 9, 2025

    How to Elevate Your Morning Routine with Good&Moore Syrups

    May 9, 2025

    Why You Need to Use Social Media to Tap into Your Desired Audience

    May 2, 2025

    How to Select the Best Clinic for Safe and Efficient Laser Hair Removal

    May 1, 2025
    Categories
    • News
    • Apps
    • Automotive
    • Business
    • Digital Marketing
    • Education
    • Entertainment
    • Fashion
    • Food
    • Health
    • Home Improvement
    • Law
    • Lifestyle
    • Pet
    • Social Media
    • Technology
    • Travel
    • Contact us
    • Privacy Policy
    Worldnewsite.com © 2025, All Rights Reserved

    Type above and press Enter to search. Press Esc to cancel.