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Key Factors Supporting Current Gold Prices

Anthony Allen Anderson

Updated: March 21, 2022

Gold Prices
Editor’s Note:

Gold is a stable and secure  investment for millions around the world who faithfully invest, knowing the relative low risk of the market. From October 28, 2016 until November 4, 2016, the S&P500 dropped for nine days consecutively, its longest losing streak since December 1980. Election uncertainty and macroeconomic factors are providing support for gold prices, which recently hit a one-month high at around $1300/ounce. Investors widely  believe gold is a long-term investment that can protect their savings and retirement plans from inflation and a devalued currency.

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In fact, over the past few years, gold has proven to be the most popular investment next to CDs. Gold IRA investing is gaining popularity as a hedge against inflation, deflation, geopolitical, macroeconomic and systemic risk.  Since 2008, gold has outperformed most asset classes and is up 169 percent in seven years.

The Golden Compass

There is positive momentum around the world in the gold market – with special emphasis Asia, where investing in gold was once prohibited.  Since gold was reinstated, the Asian market has become a powerhouse for the commodity.  India is another market that has propelled the gold prices and invested in 900 tones - well over one-fifth of the total world market, cites Bullionvault. While there were times when gold hit rock bottom, the past 40 years the market has seen a gross of $669+ according to

Since 1976, the gold market went on a winning streak -- improving each year.

Investment Jewelry

In 2007, the gold market hit an all-time high – with investors reaping a 27-percent increase.  Since then, with restrictions on investing in the Asian gold market lifting, people in Asia are looking at gold as a sound-investment.  Many in Asia see gold as an investment in their jewelry (aka, gold is called the “investment jewelry”) where heavy bracelets and necklaces are most popular.   In addition, many Asians look to gold as a sound investment for their retirement and savings plans.

Global Uncertainty

The United States Presidential Election is contributing to volatility in stock prices as polls are changing daily and what once looked like a certain Clinton landslide is increasingly contested in key states. Citing past a prologue, investors assume (with history on their side) that political an economic uncertainty will be a boon to precious metals.  For instance, the weakened U.S. dollar of a few years ago sent the stock market south, yet gold investment returned 131%.  The mortgage crisis and subsequent recession that started in 2008 affected stocks and real estate around the world, however gold remained stable during these difficult recent economic periods.  Experts believe gold and silver will continue to retain its luster over the next few years as the United States, Asia and Europe all have a number of financial and political challenges to overcome.

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