Importance of Investing in Gold

Why is gold the product that has this property, which is exceptional? Most likely it is due to the history of the first type of money, and after the establishment of the gold standard, which fixes the value of money. Get the idea of the security of a money supply that always has value, no matter what happens. The properties of gold also explain why it is uncorrelated with various sources. These incorporate assets, bonds, and oil. According to this link,, the price of gold does not rise when other asset groups do. There is no inverse correlation because stocks and bonds are mutually exclusive.


bullionHistorically, gold remains an outstanding boundary versus inflation because its value rises when the living expense increases. Over the past 50 decades, investors have seen the price of the gold rise and the stock market fall during years of high inflation. Throughout the 1930s Great Depression back then, the relevant procuring potential of gold increased while other prices dropped sharply.

Geopolitical Factors

Gold maintains its value not only in times of financial uncertainty but also in events of geopolitical dilemma. It is also frequently associated with a “crisis asset” because people flee to relative safety when global tensions rise. In this sense, gold plays the essential role of supporting the power of all the currencies on the planet. The bottom line is that gold is money and currencies are just pieces of paper that can lose their value. Why? Because governments have absolute power to determine the value of each nation’s funds.

Against all odds, America elected President Donald Trump, who no one could have predicted what the next four years would be like. Since he is commander-in-chief, Trump can announce nuclear war, and no one could legally stop him. Britain has left the EU, and other European countries want to do the same. Across the Western world, doubt is in the air as never before. The U.S. government is pursuing the source of the exit. Ireland and France did the same thing in 2011 after Poland failed in 2013. Since 2011, the Treasury has taken money from public employee pension funds only four times to fill funding gaps.

World Banks

bankThe five largest U.S. banks are bigger now than they were before the disaster. You’ve heard about the five largest U.S. banks and their systemic importance since the current financial crisis threatened to break them up. Lawmakers and law enforcement officials promised to fix this problem in the aftermath of the catastrophe. More than five years after the tragedy ended, the five largest banks are far more critical to the system than they were before the disaster.

The government compounded the problem by forcing some of these so-called “big banks to fail” to swallow insolvencies. If one or more of them were to fail today, the consequences could be catastrophic. The derivatives that banks neglected in 2008 have not evaporated as the government promised. Even after an annual increase in interest rates, the most vital interest rate remains between 1/4 and 1/2 percent. Within another disaster, the Fed will have more than half a percent, cut the interest rate.

Business Enterprises

American businesses are failing at a record pace. In early 2016, Jim Clifton, CEO of Gallup, proclaimed that U.S. business failures have outpaced startups for more than three years. The lack of midsize and small businesses is having an excellent effect on a market that has long been driven by the private sector. Large companies are not immune to problems. Many U.S. market heavyweights, such as Microsoft (which cut 18,000 jobs) and McDonald’s (which closed 700 stores during the year), have been affected by this terrible trend.