Curbing high inflation around the world will be painful and could even slump growth, but it must be done quickly to prevent rising prices from taking hold, the heads of the world’s top central banks said at the world’s annual conference. European Central Bank in Portugal. Usually, gold tends to do well in times of high inflation, but investors will be concerned about parking their capital in a zero-yield assetadded the analyst.
The index dollar is nearing its recent two-decade high, on track to close its best quarter in more than seven years, making gold more expensive for foreign buyers.
Is it suitable as an investment?
Metals in general have always had the fame of “shelter value”, this is because they are purely and exclusively limited by nature. By not depending on governments, its value is not negatively affected according to the historical context, but it is positively affected: when the world economy begins to collapse, gold manages to rise in value, this is how during 2020 – first wave of Covid-19 – this metal touched the historical maximum of 2000 usd per ounce. Then, during the war between Russia and Ukraine it reached peaks of 1979 usd.
It should be noted that in Argentina there are many requirements to acquire paper currency; On the one hand, we have to pay taxes on the total cost of the money we want to buy and, on the other, there is a monthly stock of up to 200 dollars. Both items condition us when it comes to changing our currency. With respect to gold, neither of these two things happen, access is free and does not require extra payments. Although it is a value asset, it is not one of the most used options if you are looking for a short-term return.
Source: Ambito
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