Of all the precious metals, gold is the most popular as an investment. Investors generally buy gold as a hedge or harbor against economic crises.
Like most commodities, the price of gold is driven by supply and demand as well as speculation. It is generally accepted that interest rates are closely related to the price of gold. As interest rates rise, the general tendency is for the gold price to fall, and as rates dip, for gold price to rise.
Gold has survived every economy history has ever witnessed, and preserved investors’ purchasing power over a span of some 5000 years.
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