Gold Prices and the Ukraine Invasion
A recent article by CNBC reported Gold prices are up over 6% in 2022, and the S&P 500 stock index is down 13%. This is primarily due to the invasion taking place in Ukraine. The price of gold tends to rise whenever there is economic uncertainty or political unrest. Keep reading to learn more about what happens to gold during economic uncertainty, what is going on with gold today, other benefits of gold, and how to get started investing in gold today.
What is Happening with Gold Today?
In an article by Yahoo! Finance, gold prices popped higher on Thursday as traders sought safe-haven plays with Russia invading Ukraine. Spot gold prices popped 2.1% to $1,970 an ounce, hovering around a one-year high. The move in gold comes alongside a major risk-off trade in markets globally as Russia launched an attack on Ukraine.
Dow Jones Industrial Average futures plunged more than 600 points as of 5:45 a.m. ET. Russia’s main stock market tanked about 45% at the open. Markets in Europe were also under considerable pressure, with sentiment hurt further by crude oil breaking through to $104 a barrel. As for gold, the yellow metal has been a solid performer even before Russia’s invasion as traders have looked for bets against elevated inflation. Gold prices have gained by about 8.3% since early January. The SPDR Gold Shares ETF is up 4.3% year-to-date, compared to a more than 11% decline for the S&P 500.
Gold Goes Up In Economic Uncertainty
Gold’s rising prices should come as no surprise to investors because one of the many reasons people choose to invest in gold is because its value goes up during economic uncertainty and political unrest.
According to Investopedia, during times of economic uncertainty, as seen during times of economic recession, more people turn to investing in gold because of its enduring value. Gold is often considered a “safe haven” for investors during turbulent times. When the expected or actual returns on bonds, equities, and real estate fall, the interest in gold investing can increase, driving up its price. Gold can be used as a hedge to protect against economic events like currency devaluation or inflation. In addition, gold is viewed as providing protection during periods of political instability as well.
Other Benefits of Investing in Gold
Aside from being a safe haven during economic uncertainty and political unrest, there are many other benefits of investing in gold. First, investing in gold does not take any expertise or special knowledge. Unlike investing in other things such as stocks or real estate, you need to do a lot of research and spend a lot of time learning the space to help you reach your financial goals. With gold, you can start investing today.
Also, gold is highly liquid, and it is easy to sell when you need cash. With real estate, you will need to list the property, wait for offers, go through the escrow process, pay your realtor, and finally get your money back. With gold, you can sell as much or as little as you want and get the cash quickly.
Other benefits of investing in gold include:
- In its 3000-year history, gold has never been worth zero
- Gold can not go broke or bankrupt
- Gold is not vulnerable to manipulation or devaluation by the government or Central Bank
- It’s rare and in limited supply
- Gold is globally recognized, accepted, and traded
- Gold can outperform most stocks, including high-flying technology stocks, bonds, equities, and commodity markets
- Gold can be considered a currency and, unlike paper currency, gold has a long history of holding its value
- The value of gold rises as the value of paper currency decreases
- Nobody has to know you own it. Not many other assets can say the same!
- There is no limit to how much gold you can own or restrictions on how to obtain it. You are limited only by your own budget.
- There is no branch of the federal, state, or local government that needs to know about your gold, which means you do not have to report any gold purchases
About Priority Gold
The Great Depression, the Coronavirus pandemic shutdown of 2020, and now the Russian invasion of Ukraine have all shown that investing in gold will protect your retirement and savings during economic uncertainty and political unrest. Whether you choose to buy gold coins, gold bars, or a precious metals IRA, investing in gold is a great idea for anybody looking to secure their financial future.
If you are ready to invest in gold to protect your savings and secure your future, we can help. Priority Gold is one of the most trusted precious metals dealers in the United States with BBB A+ Rating, AAA Rating with Business Consumer Alliance, and 5 Stars Rating with TrustLink.
We specialize in providing precious metals investment services with Security, Liability, and Great Convenience for customers. Our team is committed to helping to streamline their precious metals purchases at a fair price, selecting the right precious metals portfolios, and meeting their important financial objectives.
We offer Free Storage for qualifying Gold & Silver IRA accounts, a fast & easy gold buying process, and smooth IRA Transfer. Priority Gold guarantees the highest standards of customer service, which comes with honesty, professional conduct, and Ethical Code of Business.
For more information, visit us at prioritygold.com