Gold Breaches $1,900 on Geopolitical Uncertainty 

Gold breached $1,900 per ounce as of the weekend of 2/20/22 due to geo-political uncertainty with the possibility of Russia invading Ukraine in on top of looming recession fears, economic uncertainty post-covid and the prospect of re-opening growth fueling further inflation.

We have not seen this quick of a rise in gold prices or these price levels in since the last 8 months (kitco.com) and prices are expected to rise higher. This comes after a long period of stagnant gold prices as the yellow precious metal has received recent competition from cryptocurrency like bitcoin, which is said to act as a hedge against inflation and replacing gold as a store of value. But with stocks down in this extremely volatile post-Trump economy, cryptocurrencies also took a major hit the last 6 months, following the stock market’s decline.

All of this is good news for gold, as we see investors fleeing to gold investments instead of stocks, digital assets, and even real estate. As fears of a technical recession loom, fears of war increase, and energy costs continue to rise, financial behemoth Morgan Stanley claims that recession is a real possibility and therefore favors a more defensive investing position, claiming that the stock market correction over the last 6 months is not yet done. While retail investors keep buying the dip, the dip keeps dipping. There seems to be no safe haven at the moment.

Gold, however, remains stable, and if at times if appears to have slow growth, we saw a serious gain this week alone as gold surged $60 per ounce as investors sought a safe haven, affirming the financial ideology that gold is among the most stable investments for a longterm store of value, which is gold chains, for example, like the gold figaro chain pictured above, are a good investment for those who want to wear their investment as jewelry and enjoy its aesthetics, while waiting for the gold price to continue to rise.

Finally, the gold price is bring driven up by retail and consumer growth as economies begin to re-open after the draconian lockdowns we all witnessed. Even as Trudeau, for example, is bullying truckers in Canada, most nations are re-opening their economics and dropping mandates. While this is what we want in the long-term, in the short term, the re-opening can contribute to inflation, further triggering a recession. This news also comes after the Fed announced that it will raise interest rates as a response to controlling the rate of inflation.

Look for the next gold price resistance at $1,930—but also keep in mind that if tensions ease with Russia and Ukraine and we see some good news geopolitically, that gold can also have a correction and return to the former levels in the $1,800 range. Longterm growth, either way, is likely inevitable, which is why many people continue to invest in gold coins, like the American eagle or in various gold investing vehicles, whether digitally or in physical gold.

Apples of Gold Jewelry prices may also be effected by the increase in gold price, but we will first wait to see if the rise continues or if gold drops back down to pre-$1,900 levels. With our value-based approach to pricing our gold jewelry, we will likely only adjust prices modestly if gold begins to approach closer to the $2,000 level. For now, we recommend taking advantage of our jewelry which, for now, is currently priced at older gold levels.

Category: Gold Jewelry, Gold News, Gold, Stocks, Crypto