The Highs and Lows of Gold

Aug 12

Gold has a long-standing reputation for being a valuable commodity and investment tool. However, the price of gold hasn’t always been linear.

There are several variables that play a role in the rise and fall of gold prices. These include mining costs, geopolitical tensions, and changes in supply and demand. However, it seems the most notable influences on gold stem from economic factors. When the U.S. economy is booming, gold prices tend to go down. But when the economy declines, many investors turn to gold as a safe-haven, driving prices up.

So, why is gold still considered a reliable asset?

Although the price of gold has fluctuated throughout the years, it still acts as a hedge against inflation. To put it simply, it maintains its value much better than other currencies! And when you have a gold currency, like Goldback, you’re protecting your purchasing power twofold. Not only are you gaining an appreciating asset, but you also gain the utility of Goldbacks. Meaning, you can spend gold on small transactions, rather than using a currency that’s more greatly affected by inflation.

Source: https://www.investopedia.com/gold-price-history-highs-and-lows-7375273