Financial markets have faced instability due to escalating geopolitical tensions, including conflicts involving Israel, Iran, Russia, and Ukraine. Gold has solidified its status as a hedge against inflation and a safe haven during these uncertain times. It is resilient in value compared to fiat currencies, which can depreciate through excessive printing. Gold's low correlation with other assets helps diversify investment portfolios, reducing uncertainty's effects. Historical trends show gold's value rises during crises, as seen during the COVID-19 pandemic and recent geopolitical tensions.
Gold is a proven hedge against inflation, preserving the value of assets when other prices rise. This is because, unlike other currencies whose value can diminish as central banks print more fiat money, gold's worth remains resilient.
When there are wars or high political tensions, gold's value usually increases. This is due to a combination of economic uncertainty, market fear and safe-haven demand.
Over the past two years, global geopolitical tensions and trade uncertainty have put the price of gold in a strong position.
Throughout history, gold has withstood crises and geopolitical events. During the COVID-19 pandemic, gold's value surged as stock markets plummeted.
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