Gold In Times Of War And Political Turmoil
by Arnab Dey Finance Published on: 19 March 2022 Last Updated on: 18 October 2024
Gold, for thousands of years, has and continues to be a safe-haven asset for wealth in times of war, political turmoil, economic collapse, and corruption. The United States dollar was initially backed by gold, but in 1972 when we got off the Gold Standard, everything started to unravel.
Politicians could then decide how much money they wanted in circulation, which turned into a charity for any cause they were getting paid to support. Not much has changed in the political corruption department, aside from it growing exponentially in the past two years alone.
How Gold Becomes Valuable During War & Political Instability?
During world wars, gold is becoming the most precious metal. During any type of war, gold is consistently winning the race. These times the nations are going through financial-economic changes. So you have to pick those types of money which have more financial stability.
Here are four reasons for which during this time of war you must invest in the golds.
1. Hyperinflated Fiat Currency? No Thanks
The U.S. government has printed more money in the last 2 years than ever before – 80% of the United States dollars in circulation were printed in the last 24 months. What does this tell you?
The currency most of us rely on for stability, family care, livelihood, and sustainability is about to get turned on its head; click the link for more information on gold in our economy.
Had we never got off the gold standard, we would be in a much better place both economically and in the eyes of other countries. Our government has made a mockery of its people, currency, economy, validity, and trust in the eyes of both our allies and enemies.
Related Resource: 3 COMMON WAYS TO BUY AND SELL GOLD ONLINE
2. Russian And Ukraine
Right after Russia invaded Ukraine, gold jumped in price to the highest it’s been in over a year. This proves to be a current example of gold’s reputation as an asset built for times of war and economic collapse.
Not to mention, Russia recently started buying up a ton of gold, with talks of it heading back to the gold standard since their fiat currency is also a farce and joke to others around the world. With 1 Russian ruble equaling a mere $0.0097 US dollar, you can only imagine the fear and inadequacy the Russian citizens feel within their own corrupt government officials.
3. Bitcoin VS Gold
At the same time that gold had a price increase because of Russia’s invasion of Ukraine, bitcoin fell by 10% in a single day, leaving it down over 20% from weeks prior. Although bitcoin is the most popular cryptocurrency on the market, it is still subject to extreme volatility in times like these. Why?
Because it doesn’t necessarily have intrinsic value like precious metals do. It also is much more susceptible to governments cracking down on its legality in the market.
Even though we all know cryptocurrency is more reliable than the hyper-inflated US dollar, chances are the government will enforce strict policies on it once more people start revolting against the fiat currency they push in our faces.
4. Problems With Gold? Not In This Day & Age
“The actual problems with the gold play start when geopolitical uncertainty accomplishes and escalates, then the acceleration can’t be in a sustained stage,” Christensen, an editor for Kitco wrote. With the current state of the world and the path we are going down, there will be an abundance of geopolitical uncertainty.
The world’s base currency (the US dollar) is over 30 Trillion dollars in debt…it’s inflated beyond repair, and unfortunately, this move is going to affect every single economy in the world. Not to mention, gold has never been an asset that needs momentum; it is a metal with intrinsic value and real-world uses, making it an in-demand asset in all economies.
Wrapping Up:
If you are searching for good economic stability. In that case, you must invest in gold as the gold currencies always have higher stability and even stay stronger during monetary inflation. But no investment is free of risk.
You have to closely monitor the ups and downs of the gold buying and selling market. Hence investing in precious metals is always better than investing in other things.
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