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HAS GOLD LOST ITS LUSTRE?

· Heavy inflation. War in Europe. Interest rates close to rock bottom. And yet the price of gold is around 5 per cent below its all-time high of August 2020. Has gold lost its lustre? Is it no longer considered a ‘safe haven’? Such a conclusion would certainly be premature

04/03/2022@09:45:15

First, central banks seem to have convinced the general public that the recent surge in consumer goods price inflation will be temporary. While it may last a little longer than originally thought, central bank councils keep saying it will return to normal sooner or later. As people buy this story, they do not reduce their cash holdings by, for instance, exchanging their cash for gold and silver, so actual inflation leaves the prices of these precious metals relatively unaffected.

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