Vaccine Protests in Canada and the Price of Gold
The recent vaccine protests in Canada have no doubt made an impact on the price of gold, among other commodities. Whenever there is an economic issue, political unrest, or a list of other issues, gold prices tend to become affected, and, usually rise. Keep reading to learn more about the vaccine protests in Canada, what has happened to the price of gold lately, why protests affect the price of gold, and how to start investing in gold today.
What are the Vaccine Protests in Canada?
According to Reuters, The “Freedom Convoy” began as a movement against a Canadian vaccine requirement for cross-border truckers, but has turned into a rallying point against public health measures and Prime Minister Justin Trudeau’s government. Protesters have shut down downtown Ottawa for the past eight days, with some participants waving Confederate or Nazi flags and some saying they wanted to dissolve Canada’s government.
The article continues that the well-organized blockade, which police say has relied partly on funding from sympathizers in the United States, saw protesters bring in portable saunas on Saturday to combat frigid temperatures. About 5,000 people demonstrated in Ottawa, police said, while hundreds more gathered in Toronto, Canada’s biggest city, and Quebec City, coinciding with the city’s annual winter carnival.
Continuing; Four people were injured in Manitoba after a pick-up truck drove into a crowd late Friday, police said. Some Ottawa residents, who have endured near-incessant honking, smashed windows, and harassment for wearing masks themselves, criticized Ottawa Police earlier this week for not doing more to end the blockade. One resident filed a class-action lawsuit against convoy organizers, seeking up to $10 million in damages and an injunction to end the protests.
What Has Happened to the Price of Gold Due to the Vaccine Protests?
In an article by Fortune, the bridge is North America’s busiest trade link connecting Detroit to Windsor and a vital artery for the auto industry. About 25% of the trade between the U.S. and Canada crosses this particular bridge—about $360 million in cargo daily, according to Reuters. The seven-day blockage, therefore, had wide-ranging consequences. The auto industry alone is facing losses as high as $988 million because of the blockades, given that there’s an estimated $141.1 million worth of vehicles and auto parts flowing in and out daily, according to 2021 data from IHS Markit, a research firm.
Due to all of these issues, the price of gold tends to rise. There are many issues happening in the world right now which is causing the price of gold to rise. It is difficult to pinpoint exactly how much of the rise is due to the convoy, however, it wass a contributing factor.
How Do Protests Affect the Price of Gold?
Protests affect the price of gold for many reasons. They include:
- Economic uncertainty. The Freedom Convoy caused a host of issues, as stated, which cost a great deal of money. The important trading links being cut off caused a ripple effect of economic issues that trickles down to every average citizen. As such, the economic uncertainty means people turn to gold as a safe haven to protect their savings and retirement from what consequences may come.
- Political unrest. When there is political unrest, such as with the anger pointed at Canadian Prime Minister Justin Trudeau, the price of gold goes up. There is no telling what a world leader may decide, and this can have financial implications for all.
- Inflation. As world issues emerge, inflation tends to rise. This is especially true when supply chains and trading links are cut off due to protests such as the Freedom Convoy. Gold is famously used as a hedge against inflation which protects retirement and savings funds, as well as other investments.
Investing in Gold with Priority Gold
The Freedom Convoy is ending, but the issues they were protesting still remain. This means that there may be another protest on the horizon, and the next one could have worse implications. In addition, there are many other world issues happening right now, on top of the world still recovering from the COVID-19 pandemic. With so much at stake, it is important to make sure that your savings, money, retirement, and other investments are well protected and diversified with gold.
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