NewsGOLD AS A STRATEGIC ASSET

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GOLD AS A STRATEGIC ASSET

DUBAI GOLD | 1 FEBRUARY 2025

Gold is very liquid since there is always a need for it. 

Gold is a type of financial insurance as well as a means of gradually building wealth. The cost of an ounce of gold has risen by more than 5,000% since the 1970s. Gold’s value has steadily increased over time, despite occasional drops, particularly in uncertain economic times. Gold’s value rose during the Black Monday tragedy in 1987 and the oil crisis in 1979. It also went up after 9/11, the 2008 recession, and the 2020 pandemic. There is a tendency for governments and investors to look to gold during difficult times.

Instead of using gold as a short-term trading instrument, think of it as a long-term insurance policy.  The World Economic Forum estimates that America’s debt has risen to all-time highs and is currently at almost $300 trillion. Like everything else, we will eventually reach the debt levels we have been experiencing for the previous fifty years. In order to access your gold in an emergency, you should make it as liquid as possible. 

When inflation is expected to take root and devalue the currency, or when political difficulties force money to flee the stock market and seek safety during periods of systemic turmoil, like Brexit. The earlier you can spot declines, the greater your chances of making money. If substantial inflation or economic instability are not expected, there is often little chance for the price of gold to rise.

increased demand from gold-using markets, including jewellery manufacturers, who are considering purchasing gold in order to take advantage of potential price pressure that will also raise the price as a result of supply and demand.