Because the price of gold continues to grow, what are the opportunities and risks for savers

The price of gold in the last twelve months Has recorded significant increaseApprox In February 2024, 60 euros per gram today for almost 90 euros per gram todayWith an increase in about 50%. This flows on the role of gold and the stability of this growth over time as a good refuge. Gold, which is historically considered a safe against inflation and economic uncertainty, has seen an increase in its demand in the context of geopolitical tensions and strategies of the central banks, primarily in Chinese.

But what was this strong increase in prices? What impact the factors, such as Beijing’s currency policies and the sanctions imposed on Russia? In addition, is it even more meaningful that the uncertainty of the Trump administration, the threat of business duties and the new global scenes, the savers focus on this precious metal?

We talked about it Piatro GazanicaTo understand the dynamics in the context of the increase in gold and evaluate whether it is a convenient investment choice for citizens.

Gold Price Trend in Dollars in Dolla

Let’s start with the golden concept of “refuge.” What is it?

This plays the most important role as the “fog of the time” is considered the mainstay among the golden currency values. Gold, in fact, does not experience the effects of inflation; This metal tends to maintain its value over time, and is often searched above all when the chance of general growth in prices is opened. In addition to economic or political crisis, investors are taking refuge in gold because it is considered safe than securities, bonds or coins that can undergo strong oscillations. Finally, the value of gold often moves independently depending on stocks and bonds, which become the best part of investment wallets.

Top ten countries in the world for golden reserves. Source: The World Gold Council

Last year, gold prices have increased significantly: in February 2024 it was 60 grams per gram, and today it touches 90. How do you come?

A required prototype must be done: the value of gold, like other benefits, is affected by the relationship between the supply and the need; One of the main events of recent years has been purchased by the central banks, especially by the growing countries. In 2024, China made a part of the lion and acquired a large amount of gold, and for this behavior, to equip itself with its true value in the global chess board. There is war in Ukraine: Before the conflict begins, Russia concentrated financial resources and qualifications in various markets. However, international sanctions have blocked a portion of these assets abroad, which has made the importance of having important gold reserves. Finally, the Goldsmith sector plays an important role: countries are, for example, India, in which gold jewelery is still widespread, and it is increasingly enhanced by the economic conditions of the population. In this context, he does not weigh the golden hunger of the Chinese families who buy less luxury in the current situation.

Consumption and Gold offer. Source: The World Gold Council

By choosing Donald Trump to the White House, the duties of the duties have come to China primarily to other world powers. The economic policies of the new US administration also help to increase “gold racing.”

As we explained, gold is considered a good refuge because – among other things – it does not experience the effects of inflation. So this metal is highly acclaimed in historical times, in which prices are feared. Well, Trump’s policy on duties can determine this increase because the US consumer will see themselves to be able to buy more expensive local goods or pay an increased price by the duties of imported products. In addition, the restrictions on illegal immigration will reduce the availability of foreign labor, with the effects of inflation, determine the growth of “discovered” jobs and wages. These factors raise fears about a difficult period for prices and financial markets, which can negatively vulnerable by protective policies. For this reason we buy gold as “refuge property”.

This method is a last question of non -financial operators but a last question about citizens: can it be a good time to invest in this metal in the light of the increase in gold quotations we have seen last year?

It is very difficult to answer this question. Currently, the advice I feel that I have been given to an investor must be wise and his choices should be well weigh. Gold may still rise, especially in the context of uncertainty, but it has already increased by 10% compared to December, from the values ​​between $ 2,600 and $ 2,650, from about $ 2,900. If there are no serious scenes, it grows how much it grows and the rim of the rise is reduced. Another important factor is the tendency of US interest rates: if they increase, gold will become more attractive than government securities, which also provide income. Gold, in fact, does not create coupons, so its “cost” is the abandonment of more lucrative investments. Also, gold should not be considered a warranty or stable investment, for example a deposit account. It is a good refuge for a long time, but subject to fluctuations. It should not be taken as it will continue to grow indefinitely. It is meaningful to insert it into the diversified portfolio to balance the danger, but with awareness. The past repeats itself, that is, its quotes are still increasing in the coming months, and not always valid. Therefore, the call should be cautious.