With the price of precious metals reaching new heights, investors have been talking about gold prices reaching an all-time high since summer August 2020.
With the looming threat of a Russian invasion, it’s no surprise that investors are concerned about their physical assets. Investors are turning to precious metals for protection. The demand for safe-haven assets like these is nothing short of skyrocketing!
Gold Price ($) 1st – 8th March 2022
Why is Gold Up?
President Vladimir Putin has vowed to continue Russia’s invasion of Ukraine until Ukraine surrenders. This has prevented over 200,000 people from being forced to leave Mariupol for the second day in a row.
The gold price has responded to the escalating conflict, with prices reaching a new high of $2010 an ounce on Tuesday 8th March. This is the highest price that gold has reached since 2020. The Ukraine-Russia conflict has been a vital driver of the price movement.
The recent rise in food and energy prices is a significant factor behind the increase in inflation since the 1980’s. As Central Banks tighten their budgets, they will also affect precious metals like gold which are used as money alternatives when currency becomes unstable or lost due to hyperinflation events.
In today’s world, where we live with political uncertainty around borders, it only makes sense that people would want protection against uncertain economic times by storing some assets away from ground zero – silver or gold metals.
Investment gold new all-time highs?
Gold, as a physical asset that has long been shown to be beneficial in shielding against political upheaval, war, and inflation, typically does well when other assets are not performing well. As a result, concerned investors have once again focused their attention on solid investments such as precious metals during these times of war and ever-increasing prices. Overall, the demand for investment gold and silver is rapidly increasing.
While it’s tough to determine whether the price of gold will continue to climb, it is clear that many investors are flocking to precious metals as a safe-haven asset during these uncertain times. Moreover, with the Ukraine conflict continuing, gold prices are expected to rise even higher as additional Western sanctions, and a possible ban on Russian oil imports are anticipated to send gold prices exploding even more.
At the moment, it would not be surprising to see the gold price move closer to the all-time highs of $2,075 in summer 2020 and possibly even higher.
The requirement for physical precious metals to protect wealth in the future has made precious metals popular among investors. Have seen all-time high prices and is only speculated to rise with the uncertain global market. We anticipate that bullion dealers will be busier than ever now, as the growing demand for real gold as an investment would be a smart choice for people trying to protect their future.
What are your thoughts on gold prices reaching all-time highs? Do you think this is a good investment for the future? Let us know your thoughts in the comment section below.
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The information provided in this blog is not formal investment advice. You are encouraged to do your own research before making any decisions or investment.