Introduction

Gold has always been one of the most important asset classes, both historically and economically. This metal has been used as a saving instrument since ancient times. The price of gold is determined by supply and demand in the market. If demand increases and supply decreases, prices rise. Conversely, if supply increases while demand remains unchanged or decreases slightly, we see a decrease in prices.

This metal has always been the best way to save and invest money

The price of gold has been going up for a long time and is going nowhere. The reasons are simple: people are more insecure than ever about their future. Inflation is higher than it has been in decades and there is no end in sight to this trend, which means your money won't be able to buy you as many things in the future as it does today. Gold is a way to hedge against inflation, so your savings aren't wiped out by rising prices over time.

Gold also protects you against economic turmoil, because markets fluctuate wildly from day to day, so stocks can drop unexpectedly without warning (and bounce back just as quickly). If the stock market crashed tomorrow, wiping out all your retirement savings, what would happen? I would lose everything overnight. That is why it is important to invest in gold or other commodities: they do not go up or down very quickly, but have historically held their value over time, regardless of short-term market fluctuations.”

Its price has a unique behavior that is not correlated with stock indices, currencies or other assets.

Gold has been an important asset for thousands of years. It is considered a safe haven for investors concerned about inflation, currency depreciation, and economic uncertainty.

If you want to protect your hard-earned wealth from these risks, gold may be an ideal solution for you.

It is important to note that the price of gold does not have any correlation with stock indices or currencies, which differentiates it from other financial assets such as stocks and bonds. Since its price has a unique behavior that is not correlated to those other assets, it can provide diversification to your portfolio if you decide to invest in it.

Gold is inversely correlated with the US dollar. This means that when the US dollar goes up, the price of gold goes down, and vice versa.

Gold is a safe asset. This means that gold is not highly correlated with other financial assets such as stocks, bonds, currencies, and commodities. Gold serves as an alternative to these assets because it has the potential to protect investors from the risks associated with other investments.

Gold is also a hedge against inflation because it tends to appreciate when inflation rises and depreciate when inflation declines or spirals downward (as it did during the Great Depression). The price of gold moves inversely to the value of paper currencies, such as the US dollar, the euro or the yen, because investors perceive them as risky investments compared to tangible assets such as gold, which do not depend on the economic policy of any government or the equilibrium conditions of supply and demand or the relative value of their exchange rate to each other.

The gold market is practically divided into three parts: physical demand, jewelry demand and gold investment demand.

Gold is a precious metal that has been used for thousands of years. It is often used in jewelry for its attractive color and hardness. It also has many other uses:

• Electronics: Gold is highly conductive, making it ideal for use in electronics such as mobile phones and computers.
• Investment purposes: The value of gold is determined by its rarity, durability and beauty; This means that it can be an effective way to diversify an investment portfolio because it doesn't behave like stocks or bonds (they fluctuate with market conditions).

Physical demand is responsible for determining almost 60% of the annual consumption of this metal. About 67% of this consumption comes from emerging countries such as China and India.

Physical demand is responsible for determining almost 60% of the annual consumption of this metal. About 67% of this consumption comes from emerging countries such as China and India.

Physical demand includes gold jewelry, bullion coins, and investment demand. This latter category includes futures contracts, options on futures contracts, exchange-traded funds (ETFs), certificates issued by a bank or bullion broker that represent ownership of physical gold or silver held by a bank or custodian broker (also known as a “paper certificate”), physical bullion and coins purchased directly from an exchange or market maker at the current spot price plus commission charges for delivery to your home address within one business day via an insured courier service (so-called “cash settlement transactions”).

Only 10% of consumption comes from investment in gold through bullion and coins. People with high purchasing power are usually the ones who buy physical gold for long-term investment purposes.

It is a long-term investment.

Central banks and investors have used gold as a safe haven for centuries, because it is considered to be the only currency that will always retain its value. It is also considered a hedge against inflation, which increases when there is too much money in circulation. And, unlike fiat currency (paper money), gold cannot be devalued by government printing presses or other monetary policies.

The United States government owns more gold than any other country in the world (8133 tons).

The United States government owns more gold than any other country in the world (8133 tons).

Gold reserves are stored in Fort Knox, Kentucky.

The US government has been depleting its gold reserves since the 1970s.

The US government has been selling its gold reserves since 2015

Gold mining is an important economic activity in many developing countries, such as Ghana, South Africa, Zimbabwe, etc.

You may have heard that gold is a major source of revenue for many governments in developing countries. While this is true, it should also be noted that gold mining provides jobs and income to a large number of people around the world. This activity is especially important in African nations such as Ghana, South Africa and Zimbabwe, countries that have long been major exporters of this precious metal.

Bottom line: If you are interested in investing in gold, it is essential that you understand how this mineral affects local economies and communities.

Gold is one of the most important asset classes in the world

Gold is an important asset class, with unique characteristics that make it valuable to investors. For example, gold has a unique behavior that is not correlated to stock indices, currencies, or other assets. The gold market is practically divided into three parts: physical demand, jewelry demand and gold investment demand.

Physical demand comes from jewelry production or industrial use in electronics and dentistry (such as fillings). Jewelery accounts for around two-thirds of all physical gold demand globally – but this can vary greatly depending on country-specific factors.

Investment demand typically comes from ETFs (Exchange Traded Funds), although some investors prefer to hold actual physical bullion rather than shares in an ETF or other financial instrument (known as “physical” holdings). There are also specific types of financial products that invest only in futures contracts linked to the price of gold; These instruments provide exposure to rising prices without actually holding any physical bullion.

Conclusion

Gold is an important part of every portfolio. In addition, the price of gold is highly correlated with the macroeconomic situation, so it is important to follow its movements. As we have seen in this article, there are several factors that can affect its price: changes in the stock markets or currencies, geopolitical tensions and even the mood of the public.