Gold as an investment
Gold has been valued for centuries as a store of value, a hedge against inflation and a protection in economically uncertain times. As a physical asset, it offers a variety of advantages for investors:
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Inflation protection: Gold retains its value in the long term and protects assets against devaluation through inflation.
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Diversification: It has a weak correlation with other asset classes such as stocks or bonds, thus reducing the risk in the portfolio.
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Crisis currency: In geopolitical or economic crises, the demand for gold as a “safe haven” often increases.
Development of the gold price over the last 30 years
2000 – 2011
2012 – 2018
2020 – 2021
Continuous increase in the price of gold, especially due to the dot-com crisis and the financial crisis of 2008. The price reached an all-time high of over USD 1,900 per ounce in 2011.
After the markets stabilized, the price of gold fell but remained above $1,000.
With the COVID-19 pandemic, the price of gold rose sharply again, reaching almost $2,070 per ounce in August 2020.
Factors that influence the price of gold
Gold has been valued for centuries as a store of value, a hedge against inflation and a protection in economically uncertain times. As a physical asset, it offers a variety of advantages for investors:
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Macroeconomic developments: interest rates, inflation and USD strength.
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Central banks: Buying and selling influence demand.
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Industry and jewelry: Gold is used not only as an investment, but also industrially and in jewelry.
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Geopolitical risks: Conflicts or crises increase demand.
