Price of gold in times of war conflicts
Hello friends of Project HOPE, I hope you are all well, we have already reached the weekend. These last few days I have been sharing content regarding what I believe are the market movements in terms of cryptocurrencies when we are in times of inflation, but today I would like to share what I see happening with gold when we are in times of conflict warlike
The details are that -unfortunately- we are at a time where there are different conflicts underway, and especially currently the big problem between Israel and Iran is increasing. A few days ago, Israel bombed an Iranian consulate in Syria, where it destroyed all the infrastructure and not only that, but more than a dozen diplomats and even soldiers were murdered. This particularly escalated everything, and the United States is supporting Israel militarily.
Note: I am not biased, and I do not want to focus this post on what is related to religious, historical problems, or anything similar, I only want to refer to this as the escalation of the conflict and its impact on the price of gold as an asset .
It is more than evident that for millennia gold is an issue that has captured the attention of investors and analysts, especially in times of war. Because historically, gold has been considered a safe haven in times of uncertainty and crisis, leading to significant increases in its price during periods of war and conflict.
During war, many investors often turn to gold as a safe asset that can protect their wealth against the volatility of other financial assets, such as stocks or bonds. This is because gold has a long history as a stable and globally accepted store of value, making it a safe haven in times of crisis.
We have many examples of this, it was during World War II when the price of gold experienced a significant increase due to uncertainty and fear of possible devaluation of currencies. At the time, many investors sought refuge in gold as a way to protect their wealth from economic and political instability.
In addition to its role as a safe haven, gold has also historically been used as a way to finance war conflicts. During ancient times and the Middle Ages, empires and kingdoms used to finance their wars by plundering and confiscating gold from other nations. This gold was then used to finance the war effort and maintain the economy in times of war.
Currently, the price of gold continues to be influenced by war conflicts and geopolitical tensions, and that is why I decided to write this post. Yesterday, Gold went from being worth close to 3,330 dollars and is now close to 3,400. Which, without a doubt, confirms what I am proposing.
