The three-day G7 meeting was held in Germany. The leaders of the US, the UK, Canada, France, Germany, Italy, and Japan are tightening the noose around Moscow by cutting off its funding for the Ukraine war.
Gold is the second largest export and a key source of revenue for Russia. Many wealthy Russians have been buying gold to reduce the impact of Western sanctions.
- Purchase gold bullion which is investing in physical gold. Investment-grade gold is referred to as “bullion”, and it is frequently found as bars, ingots, or coins.
- Buy gold as a commodity-linked structured investment.
- Invest in gold with a gold Exchange Traded Fund (ETF) without needing to purchase actual gold assets.
- Invest in gold mining firms. As gold prices rise and the value of the company’s gold stockpile rises, shares of gold mining businesses should also increase.
- Gold has been regarded as a unique and valuable commodity throughout history.
- Owning gold is seen as a means to protect against market instability.
- It can be a solid way to diversify a portfolio and protect against both inflation and deflation.
- As a universal store of value, gold can also offer financial security during times of macroeconomic and geopolitical unpredictability.
- Gold normally performs well when the stock market is volatile and there are recessions or bear markets.
- Gold has been disappointed in several of its alleged virtues.
- Gold storage and insurance may produce a negative return.
- It is impossible to determine the intrinsic worth of gold because there is no yield.
- The price of gold is fully influenced by supply and demand, making it a speculative asset.
- The dangers are rising due to speculation and leverage. The price can drop significantly in a short amount of time if there are too many leveraged long speculative holdings.
