This once again weakened the price of oil and made gold production cheaper. Global economic trends indicate that when people doubt the value and safety of paper money, they resort to buying gold. People smart and patient enough to conserve their gold reserves during terrorism, war, protracted recessions, and other global upheavals are rightly proud and are likely to remain unsold, especially considering that economic and political difficulties around the world are often the norm, not the exception. While gold will almost certainly never gain or lose its relative value as quickly as penny stocks and dot-com initial public offerings, movements in the Gold Price Per Ounce can still convey information. Jordan Roy-Byrne, founder and editor of The Daily Gold, joins us to talk about the possibility of a market crash next year and, if that happens, what would happen to precious metals.
It is tempting to think that gold represents an objective and unshakable measure of wealth, especially considering the role of metal as an investment throughout civilization. If you have ever been exposed to a single advertisement on a financial television network, you have been told that gold was, is and will always be, the greatest investment of all time, taking into account its retention of value, its ancient history, its scarcity and other reasons. That announcement, together with the supernaturally low inflation rates of the time, made the role of gold as a hedge against rising price levels debatable. If the price of gold had risen steadily and measurably since the days of Tutankhamun, its price would now be infinite.
From the Romans and ancient Egyptians to the modern U.S. Treasury, there have been few metals as influential as gold. Analysts predict that the impressive upturn in gold could well continue, as the pandemic shows few signs of slowing down, allowing battered industries to reopen and allow global economies to recover. No one, or at least no one in their right mind, buys physical gold in the hope that its value will triple over the next year.
I believe that reducing the enormous expansion of the money supply and the need to immediately end the CHF ceiling are more important than buying gold in advance. An intelligent investor is one who recognizes the place of gold in the market, without attaching too much or too little importance to it. The historical value of gold means that the inflation of the currency in cash cannot affect its value, making it a safe investment in the long term. As technology improves, it is more feasible to extract minerals with lower gold concentrations from an economic point of view.
For now, Stably, a rapidly growing financial technology company, is interested in having market-creation partners that provide liquidity to gold tokens.