GOLD : The altimate safe - haven asset

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Posts: 65
Joined: Wed Oct 23, 2019 11:42 am

Tue Apr 07, 2020 8:47 am

By : Abali Ikulu

Why should we invest in a safe haven asset during this delicate situation ?
First of all ,let's try to definite what safe haven asset is .
The safe haven asset is an asset whose value is considered intrinsic i,e not subject to change depending on level of prices , a Country default or an emergency such as the one caused by the Coronavirus ,This is the main reason why safe haven assets protect in the even of default or serious financial crisis,Their value tends to remain stable over the time and is not affected by external factors .
In the even of a crisis ,the value of safe haven assets generally increase ,perhaps momentarily,as a parachute of one's funds in essence ,generating greater demand on the market ,and therefore an increase in prices, this is exactly what happening now ,the Coronavirus has triggered a race to invest
in safe haven assets and those who know how to exploit the situation are getting remarkable results.
The Ultimate safe haven is GOLD and there is nothing can protect more in case default of the national economy,although we have to be carefully and buy it at the right time . Gold is in fact highly
speculative ,so its price is characterized by decisive ups and downs. From the buyer's point of view even more so if there is a" disturbing factor "such as Coronavirus like all investment ,it obviously presents risks along with advantages and disadvantages provided we vault for the right time buying and selling Gold certainly guarantees a good return .Practically because the growth in the price ,as widely demonstrated is always higher than inflation ,it's used in the industrial sector specially in the electronic sector.
Generally Gold cannot fail, in a area like the one we live characterized by a financial economy ,the term default is increasingly common .Companies ,even states ,but also currencies can fail when they experience explosive inflation ,just think of Venezuela ,they turn into worthless paper ,but not Gold it cannot fail .In fact Gold is the shield against default ,let's think about it ,what would happen if for example Italy was on the default ? everyone would try to turn their money into Gold thus increasing in value.Thank you for reading !
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