Gold and recessions: What you need to know

Munknee/Lorimer Wilson/3-30-2022

“Depending on the length of the recession and the factors affecting the gold price, including inflation, currency value, demand and supply, there can be some fluctuations within the recessionary period but, in general, in recent history, the price of gold has maintained its value or outperformed other asset classes during times of economic instability …”

USAGOLD note: We live in a time when even money market accounts can become destabilized as a result of a credit market breakdown. In the early months of a recession investors seek gold as a safe-haven and hedge against systemic risk and financial market weakness. Thereafter, the demand can accelerate, as it did in 2009, if and when the Fed steps in with more quantitative easing (i.e, money printing) to turn the recessionary tide, or better put, to save the financial system.

This entry was posted in Gold-silver price predictions, Today's top gold news and opinion. Bookmark the permalink.