GOLD REMAINS ONE OF THE MOST ATTRACTIVE ASSET FOR GLOBAL INVESTORS

Simona Moagăr-Poladian and Mariana-Camelia Țăranu
Authors registered in the RePEc Author Service: Simona Moagar Poladian

Euroinfo, 2023, vol. 7, issue 2, 61-66

Abstract: The current paper has investigated the gold bullion trading prices on the international markets since the eruption of the international financial crisis in 2008. It has been detailed the main causes for the soaring of the market gold prices especially in times of economic recessions. The authors linked the gold price evolution to the inflation trends that have risen substantially in 2022 contributing to the diminished purchasing power worldwide. In these circumstances, gold is seen as a valuable asset nowadays, by maintaining the real value of savings and purchasing power in the face of galloping inflation and fluctuating exchange rates The volume of gold bullion traded globally reached a monthly average record of $2,000.42/ounce of fine gold in April 2023, mainly as a result of the intensification of multiple geopolitical and economic uncertainties, including the military conflict from Ukraine, the upward inflation rates due to increasing energy and food prices. This article calculated the depreciation that occurred 2008-2022 for the purchasing power of the US dollar and the single European currency. Under these conditions in which purchasing power erodes, gold is considered as a guarantee of stability in times of uncertainty.

Keywords: gold bullion; commodities market; economic recessions; inflation; purchasing power (search for similar items in EconPapers)
JEL-codes: F00 F01 F1 (search for similar items in EconPapers)
Date: 2023
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Persistent link: https://EconPapers.repec.org/RePEc:iem:eurinf:v:7:y:2023:i:2:p:61-66

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