In the last 30 days the US dollar price of an ounce of gold has gone up by more than $97 – that’s almost 7% in a month. The S&P 500 index is just about holding onto positive territory – it’s gone up by just 1.30% since the start of the year. The gold price hit $1,500/ounce on the US COMEX futures market on 7 August, taking its gain since the start of this year to a remarkable 17%.
What’s going on?
The world’s investors are getting very nervous, that’s what – and when they worry, they turn to gold. Because, unlike paper currencies, gold doesn’t let you down.
This week started with the Chinese authorities responding to the USA trade war by weakening the Renminbi by more than 1%; the Korean Won then fell by almost 1%; the Malaysian Ringgit, Indonesian Rupiah, and Australian dollar all dropped too, like tumbling dominoes.
And today (7 August) New Zealand and India followed Thailand and cut their interest rates, as Asia reacted to the slide in the Chinese currency.
When interest rates are cut, paper currencies lose value and the gold price goes higher.
How high might gold go? That really isn’t the point, unless all you are concerned about is making a quick buck.
You keep gold because in any situation of global turmoil – such as we are living through now, wherever you look – gold keeps its value.
Get your Glint Mastercard today and start using gold – the only real money.