Gold is shining

Gold is shining these days, today one ounce of gold is worth a whopping 2670 USD. That is a rise of 1000 dollars per ounce in four years. Quite the rise and again another reason to stay away from fiat money.

There are three major drivers for this:

• First, the rumours are spreading more and more on Wall Street that the Federal Reserve is going to up the speed of the rate cuts, and the next rate cut could even be bigger than what we were expecting up until now. This drives investors to Gold, as bonds and currencies are less attractive because of this. Especially the US Dollar is losing value fast, which makes gold shine even more because it is priced in Dollars.

-Second, the geopolitical context drives people and investors to certainties. And gold is the ultimate safe haven for the investor. The war in Ukraine, and especially the escalating situation in the Middle-East makes people wary of their investments, and drives them to gold.

-And last but not least, central banks are all buying gold for their reserves, an estimate says that a quarter of the buy side of gold these days comes from the central banks. The reason here is once again the weaker dollar, and the safe haven gold is!

Real money

As has been said here a lot in the last few years, invest in real money, not fiat money. Gold and silver and major crypto currencies are real money, and fiat only depreciates in value... At least, that is what history has taught us!

Sincerely,

Pele23

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