Gold has already broken the level of $ 1,900 an ounce. This means the highest price since 2011. There are many indications that the ore will soon surpass even the historic ceiling – USD 1,921.
Gold is fighting for a new record
Holidays are, it turns out, the perfect time to trade gold. Kruszec first broke the level of USD 1,800 on the chart, and now also USD 1,900. In fact, it is close to $ 1,921. from 2011
Since the beginning of this year, gold has increased by about 25 percent, and in the last two years by 55 percent. Experts from Goldman Sachs suggest that the rate will not only break ATH, that is the aforementioned USD 1,921, but will eventually reach USD 2,000 per ounce.
The beginning of a crisis unlike anything the world has seen?
But why is gold rising so much? The answer is simple. It is not only about the economic crisis that started in the first quarter of this year, but also about how politicians and central banks work to fight it. Officials are following the lowest line of resistance (probably due to the fact that, for example, the US is holding presidential elections this year and the authorities want to get a quick effect of their rescue programs) and use quantitative easing. In other words, they are printing money. This can pump up the stock market and help citizens get through the first period of crisis. In the US, each citizen received $ 1,200 and $ 500 for each child.
It sounds logical on the surface. But it can have terrible consequences in the long run, and this is how bullion investors look at the markets.
What is going on? The release of massive amounts of new money – euros or dollars – on the markets will sooner or later lead to high inflation. Weaker economies may even practice the 1920s variant of Germany, when the Weimar Republic suffered from hyperinflation.
In turn, gold and silver, which also grows strongly on the chart, are considered the so-called safe haven, safe havens in times of crisis and high inflation. Hence, we can expect further jumps in the prices of these metals.