Gold is a metal, a commodity that distinguishes itself from other raw materials. It is both a commodity and a currency or a means of exchange at the same time. This is nothing new; the role of gold in the world transcends borders, cultures and time. The history of gold is as rich as the precious metal itself. Gold is precious because of its limited and finite physical nature. Every ounce of gold ever produced in the history of humankind still exists today. Therefore, gold is a constant that outlives each human being but its value, its luster and its tradition has been passed down for millennia.
In modern times, gold has often acted as a hedge against inflation. It is also a resource that investors and traders have turned to during periods of fear and uncertainty. The U.S. dollar is the reserve currency of the world; therefore the benchmark for commodity prices around the world is the greenback. Gold is no exception. There is an inverse historical relationship between the value of the dollar and commodity prices. Read More