5 Reasons to Buy Gold (XAU/USD)
Dollar gold prices have increased by 40% since the beginning of the year, and they have been regularly updating historical highs over the past month. This rise is partly due to the 11% decline in the dollar against world currencies, partly due to speculative activity, which is often caused by growing assets. But gold's growth also has solid fundamentals — let's look at them in more detail.
Gold is a safe asset
The growing uncertainty in the world is leading to an increase in demand for safe haven assets, primarily gold. Here are just some of the current uncertainties:
- military conflicts,
- trade wars,
- deterioration of political relations between the largest countries,
- concerns about the stability of the economy, the level of public debt and the independence of monetary policy in the United States.
The demand for safe assets is growing — this is noticeable by the influx of funds into exchange-traded ETFs backed by gold, as well as sales of bullion and coins. ETFs are a more flexible investment tool compared to bullion and coins, and therefore more...