What Makes Gold A Safe Investment When Politics Are Bad

Political Unrest and Gold

Elections, wars, global events, and trade delays make the financial markets unstable because they can't be predicted. There are times when the price of gold might go up while the value of other things goes down. Gold is a safe place to put your money when you want to spend.

Gold Management Systems

Things that aren't certain lose value, like stocks and currencies. People could lose faith in the status quo, central banks could step in, and banks could be put under a lot of stress. Prices of real gold show both inflation and the cost of risk in the system. If you look at live silver prices, you can see that they change in the same way as gold prices.

Patterns that have occurred historically

Gold prices tend to go up if there are global fault lines, such as trade wars, coups, or problems involving national debt. Gold is a symbol of worth because political upheaval reduces people's faith in fiat currency. When growth is threatened, copper prices may decrease, platinum prices per ounce may reflect industrial dislocations, and palladium spot prices may change if supply networks are disrupted. Copper prices may also decline if industrial dislocations occur. Gold is the superior safe-haven asset.

Managing Risk

Consider increasing your physical gold holdings to outperform other asset classes if political risk increases. The 1 oz gold price is only a reference; nevertheless, you are the true guardian there. To assess the level of risk and industrial backup, it is important to have a certain amount of exposure to silver (via live silver prices) and to keep an eye on the platinum price chart, the palladium spot price, and the copper price.