Gold is the rarest and most sought after precious metal. As a result, he has always had a privileged place in the world of finance. All the more developed countries have their own gold reserves and the US dollar has had its price indexed to gold for several decades. As a result, individuals are often tempted to invest in gold, without even knowing exactly if this represents a good opportunity.
Gold prices up sharply
May was a surprisingly good month for the gold price. In just a few days, it climbed 6% after suffering declines and a long stagnation. It was enough for many investments to turn to the one that is often called safe haven.
It must be said that gold is a low risk investment, but it is also an investment that pays little in general. The investment gold is a great investment to bring its safe savings, but not necessarily the best investment to make lots of money quickly. Unless, of course, to invest just before the collapse of the financial markets.
US trade war deteriorates markets
The rapid rise in the gold price in May is no mystery to those who follow the world economic news. Moreover, it was even possible to plan a few weeks in advance. Indeed, the recent events that have agitated the international markets have largely contributed to this increase by destabilizing the markets.
The trade war that the United States has decided to wage against Chinaby attacking Huawei has hit the world of new technologies. However, it represents a huge share of investment and trade. This decision has stirred stock markets around the world and many investors have turned to gold to avoid losing everything in the event of a collapse.
Is gold a good investment?
The problem with investing in gold is that it saves an investor’s savings, but it also removes those economies from the market. This money is then carefully protected, but it does not circulate and no longer benefits the local, national or even global economy.
Thus, too much investment in gold can greatly harm the global economyand international markets. Nevertheless, in the event of a major economic crisis such as that of 2008, investing in gold is sometimes the only way to avoid losing everything. It is therefore still too early to know if gold is an important investment to make and the next few months should tell us more about the issue. In the meantime, investors are cautious.