What Gold Price Data IsTelling Us
In these pandemic times, gold price data can be very telling. Indeed, the price of the shiny yellow metal is up. And this is no big surprise, especially considering that the price of gold naturally goes up in times of economic upheavals.
This happened in 2008 and it’s happening again. The reason behind this is simple. When the going gets tough, people want to ensure that their wealth is on solid ground.
Stocks are based on paper value that changes erratically over time. This is especially true for speculative stocks. Gold, on the other hand, is a solid investment with gold bars to back it up.
The law of supply and demand also dictates that the two economic factors have an inverse relationship. That is, if supply goes down, demand goes up and vice versa. And the fact remains, unless alchemy becomes a truism, gold will always be in short supply.