- As Indians, we are brought up in a typical Indian family where gold as an instrument of wealth, opulence, and exchange commodity, will play an extremely critical role. The clamour for the yellow metal is drilled into every child in the Indian society with such impactful life lessons that we are fully aware of the bountiful financial heft possessed by those endowed with gold. So much so that none of the big events in Indian society will be undertaken without the glittering presence of gold in more than one form. The importance attached to the gold thus needs no elaboration. Of course, whenever the global community is inundated by conflicts/wars of diverse nature, the price of gold reaches stratospheric heights for its credentials as a safe bet for investors.
PC: Business News
- Why only India, people across the world fancy themselves to possess gold in diverse avatars that would not only showcase all their splendor donning attractively designed ornaments but also provide financial stability and cushion during times of distress. Such is the power of gold that it inherently possesses the power to make one feel confident, adding a certain spring to one’s disposition. As you know, gold was not always the go-to option in times of crisis. That changed thanks to an American president 55 years ago. As the news report mentions, the analysts are predicting the gold to touch $6000 per ounce, or even $6300, from around $5250 now. Four years ago, when Russia invaded Ukraine, gold had nudged $2000, a record back then.
PC: English Punjab Kesari
- As the joint US/Israel commenced bombing hapless Iran a few days back, it moved up 5% in a day after Operation Epic Fury commenced. Another big war next year could push it to $7000 per ounce or more. Who knows? Gold’s skittishness in the face of war and economic crises places everybody in a quandary. But it wasn’t always so. For the uninitiated, it was Newton, as Master of the Royal Mint, who set gold’s price at just under 4 pounds per ounce. What’s with mathematicians and gold? Remember, eureka-eureka Archimedes figured out the density test for gold’s purity. Newton also invented the reeded edge of coins to prevent tampering. Anyway, the price he set for gold became gospel for the next 200 years. No war even made it cheaper or dearer.
PC: The Economic Times
- Even when Napoleon overran Europe, gold demonstrated the law of inertia. In WW2, the US finally reset gold’s price to $25 per ounce, not so subtly telling the Brits who was boss. But it wasn’t until Nixon refused to swap other countries’ dollars for gold in 1971 that gold got a life of its own. It was at $193 before 1979’s Iranian revolution, and at $615 a year later. Why? Because in gold we trust. Money unmoored from gold is paper. Germans under Hitler, Venezuelans, and now Iranians have experienced this. So, when stocks and crypto look shaky, the safety of gold beckons. In fact, high gold prices are the most eloquent sign of global fear. Also, gold’s relationship with oil is broken. As such, the price of gold will skyrocket perpetually. It won’t land any time soon.
