The Great Reset – Are people buying gold or selling it?

Rehan
Pros and Cons of Having Gold in Your Portfolio

There are a couple of concerns that would-be-investors are likely to have about gold.

  • Will the value of gold be pushed down as more people learn of the financial advantages of owning this precious metal?
  • With Bitcoin and other cryptocurrency dominating their own niche space on the market will gold lose its value and people start accepting payment with crypto.
  • Can the government ever confiscate your gold leaving you with nothing?
  • These questions are the ones that pure the price movement of gold on.

And the arguments against gold go on and on. All of them sound reasonable and fair. The weird thing is that even though investing in gold is a sound investment decision. It can be logical to buy gold but the arguments that are rising up against gold may sound reasonable.

There is still a possibility that we might enter the biggest depression in our lifetime, we might still expect +the precious metal flexing its muscles.

We know that gold cannot help but move, even if it’s a small downward or upwards movement. The truth is that there is a way that nothing might change. Gold does not earn any interest, so it is only valuable as long as there are people believe in its value.  

Gold was replaced with fiat currencies as a cheaper substitute because there isn’t enough gold. However, using gold as a cheaper alternative to currency trading it can help facilitate economic facility enough gold. The problem is that the financial markets tend to have good intentions but there are certain challenging circumstances that could make buying gold and or the opportunity it’s tempting not to be polite. Over time with quantitative easing and the mad printing of new money gold might be the only thing that holds its true value.

As far as gold being a medium of exchange gold took a back seat: when gold decoupled from the US dollar at the end of the gold standard the demand for this precious metal began to rise. This became important when the gold mining industry in countries that were the best gold producers started to rise. Over the last 5 decades, the price of gold went up by more than 5000%

It first hit $2,000 per ounce in September 2011, before falling over the next couple of years. Over four years investors swore that it was still a good idea to buy gold. Then the interest rates between 2015 and 2018 were raised to repair the economy. Inflation forced negative yields however, the effects of COVID raised the price of gold further in early 2020.

The round of rate increases began earlier in the year caused a lot of pain. We know that inflation is at its highest and business confidence has been plummeting as global debt keeps rising. There are high hopes of gold pulling through if central banks can do something to rescue the global economy.

Right now, despite the gloomy outlook and the lackluster performance of this precious metal, gold can still pull through. It may come in handy in the future when the economy reset happens.

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