In a world where nothing is what it seems and uncertainty has become the rule, one thing is sure: the price of gold is going up. It has been so for decades, and now we have all the premises to expect the trend not only to continue but even accelerate. With the national debt reaching new levels each day and with the paper money being printed at rates that were regarded as impossible not so long ago, it comes as no surprise that the gold price spikes.
The intrinsic value is what gives it so much stability in a volatile market and what makes it the perfect way to save money. Inflation is the only way governments can prevent bankruptcy for now and most are not shy of typing more money, with all the dire consequences on the long run. If you check the gold prices now and compare it to what it was a few months ago, the results would be nothing less than shocking. The truth as always, is somewhere in the middle, because the price of gold wouldn’t climb as fast in the absence of devaluation of paper currency, but this doesn’t mean that the situation is going to change soon.
The gold spot is fixed in London as it has been done for a century but this is less important, because no matter where it would take place or what institutions would be involved it would always go up. One of the main concerns as with every lucrative business is not to witness another bubble, but spot gold is covered, thanks to its intrinsic value.
Credit : idea go
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