Monetary policy used to be a fairly conservative affair, and quite frankly a slightly underwhelming topic. In the past few decades, the main goal for most policymakers was to ensure a small increase of inflation every year, also known as price stability.
When considering your next gold investment, there’s another significant factor to be aware of: news as a price driver. Here are the most important events any gold investor should be aware of: news as a price driver.
With advancements in technology and the emergence of gold-backed products like ETFs or cryptocurrencies, the landscape for the gold market – especially as a finite resource with depletion of natural reserves – has the potential to change and shift over the next ten, twenty, or even thirty years. But what factors should be considered when thinking about how the gold market could evolve?
Potential Political Catalysts for Gold to the Upside
No one can predict the future. That is especially true in financial markets and politics. However, certainty sells and there are plenty of people who sell predictions that are far too confident. When it comes to price targets for financial assets it is prudent to assess their credibility and track record.
Most current estimates claim that the amount of available Gold on Earth is somewhere between 150,000 – 250,000 tonnes. And at current rates of production, it will be a few decades or a century before this supply is extinguished. But once it has, where then?
There is always a lot of hoo-hah about Gold and Monetary Policy, but rarely about Gold and Fiscal Policy. However, a Government’s fiscal policy plays an important role in the price and movement of gold. This lesson explains how.
Structured products, ETFs, ETNs and mining companies all give investors exposure to gold price movements, among other things. This lesson focuses on the small mining companies, commonly known as junior gold mining companies.
Like so many of these abstract economic terms Universal Basic Income (UBI) has a number of definitions and variants. This lesson will take you through these different ideas, continuing to a summary of both sides of this controversial policy. We will then look at what the implications could be in financial markets.