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November 29, 2022
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The price of gold soars, the market shows fear of inflation Blocksats

The “golden” futures rate has been at an unseen level since October 2012. Ore is priced at USD 1,777 per ounce. It is at most for almost 7 years. Such a high gold price means that investors are afraid of inflation. There are other reasons.

The price of gold at record levels

The price of gold does not rise by chance. Kruszec is almost synonymous with “safe haven”, and therefore assets that are worth having during the economic crisis. Anyway, now the rise in “yellow” metal prices is due to the weakening of the dollar.

“When calculating prices from New York at the current dollar exchange rate, gold in Poland is valued at around PLN 7,000 per ounce. Meanwhile, in May it was even PLN 7,452 / oz. Of course, when buying physical gold, you should add the cost of minting and the dealer’s margin, in a way that affects the ounce bullion coin to the current expenditure of 7.5-8.0 thousand. zł “

– translates to bankier.pl market situation Krzysztof Kolany.

We also know that since mid-April, as many as $ 22 billion has flowed into the ETF group investing in gold. ETFs purchased as much as 623 tons of precious metal in the middle of the year.

The reasons for the price jump

But why is gold becoming more expensive? It is worth taking a closer look at this phenomenon.

First of all, investors no longer believe, as you can see, that the economic situation after the crisis will quickly return to normal, not to mention the return to last year’s indicators.

Added to this is the current monetary policy of central banks, which are printing money at a crazy rate. The best example here is the United States, although in this particular case one can still count on the fact that the global and domestic market will swallow such large sums. On the other hand, even if it happens now, it cannot be ruled out that high inflation will occur anyway, but with a delay of several months)?

As if that was not enough, it is in the United States – but also in other countries around the world – that social unrest is increasing, which may disturb investors. Money likes peace, and the latter in the world today is definitely lacking.

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