Concerns in the world Gold Prize All Time High

Since Russia began the full -scale invasion of Ukraine in February 2022, the gold price has increased from about $ 1,600 per ounce (28 grams) to $ 3,200.

The stock exchange price for the Stockholm Stock Exchange’s gold exploration company, Lundin Goldduring the same period has risen by over 300 percent. Lundin breaks gold in, among others, South America and sells all over the world.

Even the world’s largest listed gold mining company, Newmonthas risen sharply during the period. Since Trump took office as president, Newmont’s stock price has risen by 43 percent on a falling stock exchange.

– The gold price is the highest of all time. You could say that gold is a stable investment and is not as cyclically sensitive as, for example, shares and funds, says Christian Kopfer, Handelsbanken’s expert on raw materials.

Christian Kopfer lists several arguments why the gold price is so high now.

● Trade war between the US and China, the world’s two largest economies.

● Risk of trade war between the US and Europe.

● The dollar begins to be questioned as a safe spare currency.

● Risk of even more escalated military conflicts.

● Rising long interest rates as there is a distrust of the United States being able to finance its huge government debt.

● Fear that many countries are driving their economies with large deficits, which increases the risks in the global financial system.

Despite the high gold price For example, believe the American major bank Goldman Sachs that it will continue to rise.

Christian Kopfer, on the other hand, does not want to give a confident answer as to whether the gold price can rise even more or go back again.

– If you believe in an escalation of the trade war, it is likely to drive up the gold price even more. If the trade war calms down, the gold price may fall back, he says.

Handelsbanken’s macroeconomic analysis is that the harsh rhetoric between the US and China, as well as between the US and the EU, will soften.

– The bank expects that there will be more sense and balance, eventually. Trade war benefits no one. Then the gold price should go down. But no one knows what is happening and that is part of why the gold price has risen, says Kopfer.

The high gold price has also accelerated gold among private individuals for shares, funds and buying or selling valuables in the precious metal.

How should you as a private person think about investing in gold?

– I think savers should consider having ten to 20 percent of their gold savings in their portfolio.

Companies that trade with smaller gold bars and used gold such as jewelry, watches and coins also testify to the increasing interest.

– Strangely enough, more people will be interested in buying even though the price is so high. Compared to January, our gold sales have doubled. We can order new thanks all the time, says Lars Näki, sales manager at Tavex, who is a reseller of precious metals.

But the uncertain world situation and the trade war have also raised a lot of concern.

– Many people call and ask a lot. They are worried about their pensions when shares and funds go down, says Lars Näki.

Compared to, for example However, fund fees are expensive to invest in gold. Anyone who buys gold may pay a transaction fee of over five percent.

Today’s gold price also affects those who need to borrow money from used gold. This shows the lending at Sweden’s largest mortgage bank.

– Our lending against gold has increased by 35 percent this year compared to last year. We have lent about 460 million. More people fit when the price rises, says Peter Sundström, CEO of the Pant Bank.

The American major bank Goldman Sach’s forecast is that the gold price at the end of the year lands at $ 3,700 per ounce, according to the News Agency Reuters.