This precious yellow metal can be considered an international market.
Its price has been rising continuously through the decades and we can find it almost everywhere in the world.
Investors all around the globe choose to invest various forms of this particular metal such as gold bars and gold bullion as a safe haven in times of crisis, not because of the myth which revolves around gold but because of the fact that even though the price of gold rises slowly, it is a certainty.
First of all, this can mean that gold is certainly a safe haven when it comes to capital.
As a store of wealth, this valuable metal has definitely not lost its quality.
Let´s take a look at it in comparison to the dollar.
In the last two decades, the price of U.
S.
dollars has declined considerably while the average price of gold has steadily increased.
This means that the price of gold in the world is stable and unlike other forms of investment, it is a safe one.
Some economists in the 70´s wrongly predicted that the price of gold would drop considerably.
This was a statement based on the fact that gold was thought to be used as a commodity.
Yet, the U.
S.
dollar´s value has decreased considerably ever since, after it had fallen in an inflationary crisis, while the power of gold on the market had remained quite stable.
If we take a good look at gold and examine it against the fiat currencies around the world, we can see that the results are negative for the fiat paper money while gold´s value has done nothing less than to increase every year.
This definitely means that gold actually functions as an inflation hedge because it has been priced by the market just like other currencies on the international money markets.
Gold cannot be considered a commodity but it can definitely be seen as an inflation hedge or a safe haven in times of crisis, along with timber or oil, because their value is sure to rise during periods of inflation.
As a long hedge for long term crisis, gold is the best.