It is difficult to imagine a period of greater uncertainty in the recent history of humanity. And, in recent months we have witnessed events ranging from a global pandemic, to a trade war between the world’s greatest powers, and the worst economic crisis since 1929. Therefore, it is not surprising that assets reserve for value are becoming increasingly important. Thus, gold exceeds $ 2000 for the first time in history.
Value reserve assets in today’s crisis
The year 2020 has been one of great uncertainty for all the inhabitants of the planet. However, this has not had a better expression than in the behavior of the financial markets. Well, at the same time that the pandemic that affects humanity reached the western world, the world’s main stock markets plummeted in a matter of hours.
Even today, when financial markets have rebounded and are on the rise once again. Most investors around the world know that this boom is essentially due to government aid. So they seriously doubt their sustainability in the long term, and therefore the safety of their capitals. This is where gold comes in and its new price in the US $ 2000.
And is that gold is the main asset value reserve that has existed in the history of humanity. Being widely used around the world as a refuge in times of economic, political or social uncertainty. This is due to the lack of a solid correlation between the price of gold and the financial markets.
That is, even if the world’s main stock exchanges collapse, dragging the world economy with them. The value of gold will remain or even increase as capitals enter the precious metal market to protect themselves from economic instability.
Gold exceeds US $ 2000
This would be exactly the situation that is currently being experienced in the markets. When gold has managed to exceed $ 2000 for the first time in its history. Amid the chaos caused by the Coronavirus, and the uncertainty that comes with the difficulty of the US Congress to agree on a new package of financial aid. The only means available to the government to maintain the rise in the markets.
Of course, this situation has also caused other value reserve assets to increase in price. Seeing Bitcoin once again overcome the $ 10,000 barrier, and silver following in the footsteps of gold. However, the fact that gold managed to exceed US $ 2000 has been one of the most important milestones of this crisis.
And it is that, in the midst of the deepening of tensions between the United States and China with the TikTok issue. Facing the possibility of a regrowth of the Coronavirus worldwide. And after a mysterious explosion in the port of Beirut earlier today. The truth is that there are very few possibilities that Gold will not continue to increase after US $ 2000, reaching new record prices in the coming days.