Month: March 2023

Investors Turn To Gold As The Rally In The Precious Metal Continues

No Comments
| Gold Investors

The past few years have seen a resurgence in the demand for gold as an investment. With the world economy in turmoil, investors are looking for safe-haven assets to protect their portfolios. Gold has long been considered a hedge against inflation and a store of value during times of economic uncertainty. In this blog post, we will explore the reasons behind the current rally in gold prices and why investors are turning to this precious metal in droves.

Gold prices have been on an upward trajectory since 2018. The price of gold hit a six-year high in September 2019, reaching $1,550 per ounce. Since then, it has continued to climb, reaching a record high of $2,067 per ounce in August 2020. While the price of gold has since retreated somewhat, it remains at historically high levels.

Diversify with precious metals today.

One reason behind the recent rally in gold prices is the uncertainty in the global economy. The COVID-19 pandemic has wreaked havoc on economies around the world, causing massive job losses, business closures, and supply chain disruptions. The response of governments and central banks to the pandemic has been to flood the markets with liquidity, in the form of low-interest rates and massive stimulus packages. This has led to concerns about inflation, as the increased supply of money could lead to higher prices for goods and services.

Gold is often seen as a hedge against inflation, as it is a tangible asset that retains its value over time. Unlike paper currency, which can be printed endlessly, the supply of gold is limited, which makes it a scarce and valuable commodity. During times of inflation, the value of gold tends to rise, as investors flock to it as a safe haven asset.

Another factor driving the rally in gold prices is the weakness in the US dollar. Gold is priced in US dollars, which means that a weaker dollar makes gold cheaper for buyers in other currencies. The US dollar has been under pressure in recent years, as the Federal Reserve has pursued a policy of low-interest rates and quantitative easing. This has led to concerns about the value of the dollar, as investors worry that the increased supply of money could lead to inflation and a decline in the currency’s value.


Read more

Gold is also seen as a safe haven asset during times of geopolitical uncertainty. The past few years have seen a rise in tensions between the US and other countries, particularly China and Russia. This has led to concerns about a potential global conflict, which could disrupt the global economy and lead to further uncertainty. During times of geopolitical turmoil, investors tend to flock to safe-haven assets like gold, as they offer a store of value that is not tied to any particular country or currency.

Investors are also turning to gold as a diversification tool. Many investors are turning to gold for their RRSP, TFSA and Lira accounts. Something that is a moving trend right now!In recent years, there has been a growing awareness of the importance of diversifying investment portfolios. Diversification helps to reduce risk by spreading investments across different asset classes and regions. Gold is seen as a valuable addition to a diversified portfolio, as it has a low correlation with other asset classes. This means that it can help to reduce overall portfolio risk, while still providing potential for returns.

In addition to these factors, there are several other reasons why investors are turning to gold. For one, gold is a tangible asset that can be held in physical form. This makes it a valuable asset for those who are concerned about the security of their investments. Gold can also be used as a currency, which makes it a valuable asset for those who are concerned about the stability of fiat currencies.

The popularity of gold-backed ETFs has also contributed to the rally in gold prices. According to the World Gold Council, gold-backed ETFs saw record inflows of 877 tons in 2020, surpassing the previous record of 646 tons set in 2009. This surge in demand for gold-backed ETFs has helped to boost the price of gold, as investors seek exposure to this precious metal.

While the current rally in gold prices may seem like a boon for investors, it is important to remember that gold is a volatile asset. Its price can fluctuate rapidly in response to a variety of economic, geopolitical, and market factors. In addition, gold does not offer any income or dividends, which means that investors must rely solely on capital appreciation to generate returns.

Investing in gold should therefore be approached with caution and as part of a well-diversified portfolio. Investors should consider their investment goals, risk tolerance, and time horizon when deciding whether to invest in gold. It is also important to consider the costs associated with investing in gold, such as storage and transaction fees.

In conclusion, the current rally in gold prices is driven by a variety of factors, including economic uncertainty, inflation concerns, a weak US dollar, geopolitical tensions, and the popularity of gold-backed ETFs. While gold can be a valuable addition to a diversified investment portfolio, investors should approach it with caution and consider the risks and costs associated with investing in this precious metal. As always, it is important to consult with a financial advisor before making any investment decisions.

In the current context, where inflation is high, and made even more unstable by the war in Ukraine, investors are asking themselves some essential questions. Among these comes first and foremost the profitability of their investments in the medium and long term. In times of inflationary crisis, can gold still be considered a safe haven? We will therefore try to draw up a current assessment of the gold market and try to identify its prospects for development in an inflationary market.

Can gold withstand the inflationary crisis?

If the purchase of gold is still considered a safe-haven investment, it is in particular because of its stability through the ages and crises.

Indeed, gold is a hedging asset. As it does not produce a return, it is considered a protection against inflation: when interest rates are low, investors turn away from bonds which bring them little in favor of gold.

Gold is traditionally considered a good asset for protection against inflation, moreover decor-related to the stock markets, investing in gold thus has many advantages.

This investment also offers the possibility of improving the overall performance of the investment portfolios of all investors while providing them with a certain stability and security of their asset portfolios.

Therefore, the very idea of ​​acquiring gold represents the safest investment for investors to maximize their profits, gain long-term profitability and counter the consequences that rising prices could have on the market. purchasing power of individuals.

Gold could therefore gradually protect you against the evolution of prices on the market and symbolize the first investment in the precious metals market over a long period.

Read more

https://youtu.be/lX-9Ws5ReSM

Constant progress Despite The Geopolitical Context

Both from an economic and geopolitical point of view, the current global context calls on central banks and investors to be cautious. The Covid-19 pandemic, then the war in Ukraine, and the slowdown in global economic growth and inflation considerably increased the American, European, and French debts (2,916 billion euros).

Faced with this particularly anxiety-provoking climate, investors are taking refuge in safe values, and this is clearly in favor of gold. The prospects for improvement not being the most obvious, it is clear that this trend will continue in the months to come, and perhaps even longer.

In an attempt to mitigate the deleterious effects of the pandemic, states have “turned the money printing press”. This significant increase in the money supply in circulation had the main consequence of a decline in purchasing power in these currencies and pushed investors towards other safer investments, gold in mind.

Without going so far as to speak of stagnation, the price of the yellow metal has remained fairly constant and has even allowed itself several drops during the year 2021.

How to explain this situation? One hypothesis is that of the attractiveness of crypto assets and that of the actions of certain giants (Tesla; Apple; Google etc.).

Gold should therefore, in the short and medium term, at least continue its stable/up trend and offer good prospects. Over a longer term, specialists agree that the 2020s could even be the best decade in the history of the yellow metal, bringing it close to the $5,000 per ounce mark at the start of 2030.

It is therefore strongly advised to invest now in gold, whatever its form. This will allow you to diversify your portfolio and secure your investments.

Gold remains a solution to consider during this period of inflation. Its stability makes it a very good shield against the depreciation of the currency, thus revealing its full value over the long term. Unlike savings solutions, which bear the full brunt of the loss of the euro, gold often makes it possible to preserve the purchasing power of its holder.…

Read More »

Gold: The Last Resort To Financial Stability

No Comments
| Financial Stability

For many years, economists have been warning us about the likelihood of a collapse of the monetary system and the total loss of confidence in currencies. The gold standard will then be the only valid option to save our economies.

This assertion takes on even more meaning following the posting of a text on the DNB (De Nederland Bank) website. The Central Bank of the Netherlands certifies that “if the system collapses, the stock of gold can serve as a basis for rebuilding it. Gold creates confidence in the stability of the central bank’s balance sheet, it creates a feeling of security”.

The DNB adds “Gold is the anchor of confidence in the financial system. If the whole system breaks down, the gold stock provides a guarantee to start from scratch. Gold boosts confidence in the strength of the central bank’s balance sheet.

Here we see that Gold can secure a global economic system. It is a powerful and real base. Gold allows a country to stay upright in the event of a monetary collapse and that is why many central banks invest in the safe haven.

If the grim forecasts of the fall of the currency are not a novelty, it is rare that a Central Bank speaks so freely about it and even more to recommend to the general public to invest in Gold. Indeed, it is rather exceptional for a traditional financial institute to evoke the superiority of gold compared to a still healthy monetary asset.

The Central Bank of the Netherlands, therefore, admits that Gold is the only global reference value.

Prevention Is Better Than Cure!

Central banks have always invested in gold, a safe haven par excellence. In recent years, we have seen an increase in the purchase of gold by these large banks to protect themselves from a new crisis.

The Central Bank of the Netherlands has 615 tons of gold stored largely in Amsterdam but also in the United Kingdom and North America.

However, the majority of his gold stock will be transferred to his new vault located in a military building in Zeist.

Is the country preparing for financial collapse by moving its assets into gold?

We’ve been asking you this question for a few years now. We have observed and demonstrated that the central banks of the world have increased their gold stocks. We can cite China, India, Japan, Russia, Hungary, or even Kazakhstan.

If these great powers invest heavily in gold, we can deduce that a financial cataclysm is about to happen. Central banks around the world buy gold to protect their economy.

Think about it and see if your savings are actually safe in your Bank or not. Gold is THE safe haven par excellence and is therefore an investment whose value is maintained or even increased in the event of a financial crisis. It is independent of other assets (bonds, shares, etc.) which may collapse in times of economic and political instability.

Our precious metals experts are at your disposal and can assist you in your process of buying gold.

What Could 2023 Hold For Gold And Silver?

As we enter 2023, there is much speculation on what the future holds for the precious metals market, particularly gold and silver. The global economic landscape, geopolitical tensions, and fluctuations in demand and supply all contribute to the volatility of precious metals prices. In this blog post, we will explore some of the factors that could impact gold and silver prices in 2023.

Global Economic Landscape

The global economic landscape is one of the most significant factors that could impact gold and silver prices in 2023. Several economic indicators, such as GDP growth, inflation, and interest rates, play a crucial role in determining the value of precious metals. In 2022, the world saw a sharp rise in inflation and a significant increase in central bank interest rates to combat it. In 2023, we could see central banks maintain or even raise interest rates further to tackle inflation, which could potentially weaken the demand for precious metals.

Moreover, the economic policies adopted by governments worldwide could also have an impact on gold and silver prices. For instance, increased government spending on infrastructure projects could lead to increased demand for commodities, including precious metals. On the other hand, government policies that restrict imports and exports could lead to fluctuations in supply and demand, leading to price volatility.

Geopolitical Tensions

Geopolitical tensions are another significant factor that could impact gold and silver prices in 2023. Tensions between major global powers, such as the US, Russia, and China, could lead to increased uncertainty and volatility in the financial markets, including the precious metals market. Furthermore, tensions in the Middle East or other regions could lead to disruptions in the supply chain, causing a surge in demand for precious metals.

Fluctuations In Demand And Supply

Fluctuations in demand and supply are perhaps the most significant drivers of precious metals prices. In 2022, the global demand for precious metals remained relatively stable despite the COVID-19 pandemic. However, supply disruptions due to mining shutdowns and labor shortages resulted in price volatility. In 2023, we could see mining companies struggle to ramp up production to meet demand, resulting in further price increases.

In addition, the rise of green technologies could also impact the demand for precious metals. Technologies such as solar panels, electric vehicles, and battery storage systems require significant amounts of silver, copper, and other precious metals. As the demand for green technologies grows, we could see a surge in demand for precious metals, potentially driving up prices.

Monetary Uses And More

In addition to its reputation as a safe haven, gold also has significant monetary uses. Central banks around the world hold significant amounts of gold reserves, and gold is still used as a form of currency in some countries. In 2023, we could see central banks continue to add to their gold reserves as a hedge against inflation and economic volatility.

Furthermore, gold is also widely used in the jewelry industry. With the global economy expected to continue to recover in 2023, demand for luxury goods such as gold jewelry could increase, potentially driving up the price of gold.

Silver: The Metal Of The Future

While gold has a long history as a monetary asset, silver is often referred to as the “metal of the future.” This is due to its increasing use in a variety of modern technologies, including solar panels, electric vehicles, and 5G networks. In 2023, we could see the demand for silver increase as these technologies become more prevalent, potentially driving up the price of silver.

In addition to its industrial uses, silver is also a popular investment option for individuals and institutions. Its lower price point compared to gold makes it more accessible to a wider range of investors. In 2023, we could see increased demand for silver from investors looking to diversify their portfolios.

Conclusion

In conclusion, several factors could impact gold and silver prices in 2023. The global economic landscape, geopolitical tensions, and fluctuations in demand and supply all contribute to the volatility of the precious metals market. While it’s impossible to predict the future, keeping an eye on these factors can help investors make informed decisions when it comes to investing in gold and silver.…

Read More »

The Historical Significance of Gold and Silver in the U.S. Dollar

No Comments
| Gold Standard

The United States has a long and complex history with gold and silver, both of which have played important roles in the development and evolution of the U.S. economy. In this blog post, we will explore the historical significance of gold and silver in the U.S. dollar, and how this relationship has changed over time.

In the early days of the United States, gold and silver were used as currency in the form of coins. The Coinage Act of 1792 established the U.S. Mint and created a standard system for coinage, with gold coins valued at $10, $5, and $2.50, and silver coins valued at $1, 50 cents, 25 cents, 10 cents, and 5 cents. At the time, these coins were backed by gold and silver, meaning that the value of the coin was equivalent to the value of the metal contained within it.

This system remained in place for many years but was eventually replaced by a new system in which paper currency became the primary form of money. The Federal Reserve Act of 1913 created the Federal Reserve System, which established a central banking system in the United States and gave the government greater control over the money supply. Under this system, the U.S. dollar became the primary form of currency, and gold and silver were no longer directly tied to the value of the currency.

However, the relationship between gold and silver and the U.S. dollar continued to play an important role in the economy. In the early 20th century, the U.S. dollar was pegged to gold at a fixed rate of $35 per ounce, which meant that the value of the U.S. dollar was tied to the value of gold. This system, known as the gold standard, remained in place until 1971 when President Richard Nixon ended the convertibility of the U.S. dollar into gold.

Since then, gold and silver have continued to be important commodities in the global market, and their value has fluctuated in response to a range of economic and political factors. Today, investors and traders can buy and sell gold and silver in a variety of forms, including coins, bars, and exchange-traded funds (ETFs).

Despite the changes that have occurred over time, the historical significance of gold and silver in the U.S. dollar cannot be overstated. These precious metals have played a critical role in the development and evolution of the U.S. economy, and continue to be an important factor in the global financial system. As such, they remain a valuable asset for investors and traders who are looking to diversify their portfolios and protect their wealth in uncertain times.

Unlike gold, which is primarily used for jewelry and investment purposes, silver has a wide range of industrial uses. It is used in electronics, solar panels, medical equipment, and many other applications. As a result, the demand for silver is driven not only by investors but also by manufacturers and other industries. This means that silver prices can be influenced by a variety of factors, making it a potentially lucrative investment option.

…

Read More »

Toronto-Dollar | Gold and Silver Exchange Blog 2025 . Powered by WordPress