Yellow metal is sometimes called a "barbaric relic," citing British economist J. M. Keynes. However, gold is not going out of fashion, especially in times of crises, rising inflation and hostilities.
A year ago, an ounce of gold was worth about $1,650. Now this figure has reached 1974 dollars. Quotes were steady in January 2021 and early February 2022, despite a sharp increase in the real yield of "treasurers" in the United States, which usually harms precious metal. This is partly due to the tension in relations between Russia and Ukraine. The Ukrainian crisis will continue to support rising gold prices. However, even before it, there were signs of growing institutional demand for gold. Experts believe that this state of affairs will continue until the end of 2022, regardless of how the geopolitical situation develops.
For many years, central banks have pursued a policy of large-scale quantitative easing. Now a huge mass of printed dollars, pounds, euros and other currencies do not meet the limited supply volume. As a result, we have high inflation. The US Federal Reserve and the Bank of England have raised interest rates to curb rising inflation.
Stocks are rising in price, bond yields are falling and property prices are constantly rising amid high inflation. Cryptocurrencies are now suffering from regulatory pressure. The best way to save and increase your savings is to buy gold. Now only precious metal can act as a hedge for high inflation and crisis.