A Gold Lifestyle Perspective Amidst Dark Times

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The attention on gold as a more secure investment flared up since Russia’s invasion of Ukraine.  But, as we have seen, the price of gold has fluctuated in response to geopolitical turmoil and global inflation.  At the onset of Russia’s invasion of Ukraine, the price of gold began to surge in early mid-February, breaking $2,000 per ounce by the first week of March 2022. Subsequently, it has fluctuated downward as peace talks have gotten underway.

Gold as An Investment

Classified as a precious metal, gold captures the largest market when compared to the other four precious metals.  Because gold has historic use as a currency and is considered a store of value, it has been coined a monetary metal. 

Historically, when the economy becomes uncertain or the stock market shows volatility, investors turn to gold because it’s considered a proven long-term hedge against inflation, or against the US dollar or other fiat currencies.  There is an inverse relationship between gold and the US dollar.

However, as with any investment, the price of a stock or commodity is affected by perceived value and therefore is uncertain, it does not always perform as you think it might.  And, unlike stocks and bonds which pay investors dividends and produce interest payments, respectively, gold doesn’t respond accordingly – you only profit as the price of gold increases.

Exposure to gold as an investment comes in different ways, from the physical gold commodity to gold mining stocks and exchange-traded funds.  Keep in mind that depending on your situation, the tax rate varies. For example, selling gold bullions or coins will result in a collectibles capital gains rate.

Lastly, physical gold is a consideration.  Whether storing on your premises in a heavy-duty, high-security safe, at a local bank or credit union in a safe deposit box or using an off-site storage facility, the investment in any one of these means additional costs that chip away at your overall gains.

What’s Next for Gold?

One of the mainstay players in the gold arena is Glint Pay.  Founded in the U.K. in 2015 and launching its app in Europe in February 2018, Glint serves as the world’s first gold-based savings and payments digital platform, providing multi-currency capabilities.

In partnership with Mastercard, Glint provides a fair and reliable way to liquidate gold and allow it to be used as money.  A gold-based account protects Glint’s clients from inflation and future financial crises.  With Glint, clients can buy, save, spend and share physical gold anywhere in the world.

Jason Cozens, Founder & CEO of Glint Pay, provides his insights into the gold market and how the Russia/Ukraine war is impacting prices.  He says:

“We’re living through terrible and unprecedented times - geopolitical chaos and human distress through war and global inflation. More ordinary people are now questioning the security of keeping their hard-earned money in the bank and are looking for alternative ways to protect their savings against the unpredictability of war, as well as rising inflation. Gold has, for millennia, been a preferred safe haven in times of unrest and the rise in its value that we see today is a clear reflection of what we are all experiencing in these dark days.”

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