Gold is considered a safe haven
GOLD
Gold is
considered a safe haven , where its rarity ensures a stable market value, thus
often becoming a choice of investment during turmoil.
– For example, during
turmoil such as the Covid-19 crisis, investors will buy and hold the gold which
is more stable than fiat currencies. E.g.: Before the pandemic, gold price (per
ounce) was around $1,500; After the pandemic, gold price increased to $2,000,
breaking historical highs.
However, during
a growing economy conditions, gold price will fall as investors rather invest
in other assets such as the stock and index markets that can provide higher
return. E.g.: From the year 2011 to 2013, the economy was picking up after the
2008 financial crisis. Gold price fell from $1,800 to $1,200.
Examples that cause gold
price to rise:
– Trade War
– Fed Quantitative Easing
– Fed Interest Rate Hike
– Fall In Dollar
Examples that cause gold
price to fall:
– Fed Interest Rate Cut
– Strong Economic Growth
– Trade War Agreement
– Rise In Dollar
Follow Regain capital
latest articles
-
-
- Sep 30,2020
-
- Sep 30,2020
-
-
- Sep 08,2020
-
- Aug 26,2020
Risk Warning:
The trading products provided by Regain Capital include currency pairs,
precious metals, crude oil, etc., all can be considered to carry high risks. Your investment
can increase as well as decrease in value and ultimately you may lose some or all of your
deposits. Margin trading may not be suitable for everyone. Please confirm that you are fully
aware of the risks involved before trading. Please note: any information provided by Regain
Capital is not investing advice.
Top Wealth Trading Limited is registered under Canada’s Money Service Business and Topical Wealth International Limited, authorised and regulated by the Seychelles Financial Service Authority (FSA), are members of Top Wealth Group. Regain Capital is authorised by Top Wealth Group to operate under regulatory supervision in various geographical locations across the globe.
CopyRight © 2021 regaincapital.com All Rights Reserved
