The price of gold has again risen in the face of economic unrest.
As the world’s economies enter more periods of uncertainty investors around the globe are flocking to buy gold, which is ensuring that the near-weekly price increase that started last year is showing no signs of coming to a halt.
The price of an ounce of gold has now reached $1,780, and this is only expected to rise as the classic safe haven becomes even more valuable in the face of faltering currencies and the threat of a worldwide monetary collapse.
German bank Commerzbank explained the appeal of gold in a note they distributed to their clients: “Driven by concerns on sovereign debt in Europe and the US, many market participants are currently piling into gold, because they believe it provides protection against purchasing power erosion due to inflation and currency devaluation. The yellow metal is viewed not only as a safe haven and store of value, but increasingly as an 'alternative currency' too.”
In many ways gold is the original currency, as it was used as such long before actual money was introduced.