The Gold Price

Gold is slightly reddish, is bright, soft, and dense in its purest form. Gold has a history of being used in many different ways. The types of ways that gold is most commonly used are for jewelry and art purposes. Gold is also used for the making of coins or as a currency in general. The gold price can go up and down depending on the volatility of the market. Gold was the main currency before the 1930s and by the 1970s, gold was not used as currency; the world started using paper money. Back in the 1960s, banks in the United States and Europe all came together and manipulated the currency market so that the increase in the demand for gold would not cause paper money to lose its value. In the Years 2009 to 2010, the gold price increased due to its increase in demand in the United States because the value of the US dollar started to decline. Gold also increased demand in European countries because individuals in Europe wanted to keep their assets safe when the European Union debt crisis occurred.

Current Gold Price

https://www.reuters.com/finance/commodities/metals

When there was turmoil in North Africa and the Middle East back in 2011, gold prices were also at an all-time high during this time. The spot gold prices also rose tremendously between 2001 and 2011. However, the cost of gold took a massive dip in 2014 and 2015. Just like the stock market goes up and down, so do gold prices. Gold prices started to increase again from 2018 to 2020.

Gold has a history of going up and down for decades. Many different factors influence why gold prices fluctuate. The fluctuation could be caused by inflation, geopolitics, central bank buying, and much more. The dollar has a significant impact on the price of gold; the reason why is because gold is denominated in dollars. So what this means is that if the dollar has a weak value, then the price of gold is higher. If the dollar has a high value, then the price of gold is lower. Since paper currency tends to lose value over time, gold will always be on the upward trend. Investors from all over the world will continue to invest in gold because people look at it as a safety net. After all, it doesn’t decline like their paper money. Gold has always been thought of by people all across the globe as being one of the significant wealth-building instruments. Gold has also been known to keep its value and will be in demand today and in the future.

The price of gold is highly associated with the dollar value. It is also clear that gold will always increase in value and be a safety net to protect people against inflation or a stock market crash. Because so many people globally see gold as a great wealth-building tool and a safety net this will also drive the prices up. Although the gold price may go up and down, gold will never lose its value.