Home Insights Where gold is needed

Where gold is needed

In terms of trust, gold has a unique profile: it is the only ore that is generally believed to be precious enough to maintain its value over time. Unlike diamonds, for example, it is impossible to make fake gold. Admittedly, the intrinsic value of gold is essentially symbolic, if we think about it; not much less than the underlying value of crypto-currencies, according to some. But this symbolism is almost atavistic; gold ‘speaks’ to people, whereas the blockchain does not. And indeed, gold has been in considerable demand in recent years, due to growing concern over traditional currencies.

Hence it’s not because the financial media have consistently downplayed its value, or that its market price has stabilised since 2013, that it hasn’t remained central to the system. In fact, discreetly, the appeal of gold generates massive investments, with the opening of new mines that are having a considerable ecological impact at the moment by the way (a nice theme for environmentalists).

Figure 2 – Evolution of the price of one ounce of gold. Source: Spot market


Through mechanisms such as swaps, gold loans, options, futures or credit derivatives, gold is a support for many financial tools. In early November 2018, France also attacked this market by signing an agreement with the company JP Morgan to carry out transactions on gold[5].  The objective, once Brexit is complete, is to make the French capital a gold market by offering financial products based on this metal without having to go through London.



To leave a comment sign up now
Related articles
Geta Grama-Moldovan
12 May 2020

GEAB 145 Synopsis – What New World Order?

#bitcoin #coronavirus #covid #finance #geopolitics #investment

The pandemic curves are flattening, European countries are slowly emerging from the containment phase and a new landscape is about to be revealed, whose main features we will try to [...]

Geta Grama-Moldovan
13 Apr 2020

Soon, the GEAB edition of April – The Covid Crisis as seen in the year 2040

#coronavirus #covid #finance #health #oil #tourism

At a time when the monomaniac media is drawing a smokescreen in front of everyone's eyes, the GEAB, as always, is focusing its radars on what is going on behind [...]

Geta Grama-Moldovan
14 Mar 2020

Soon the GEAB issue of March: Covid-19 and NewParadigm-20

#coronavirus #covid-19 #finance #global crisis #middle east

It would be hard not to mention Covid-19 in this coming bulletin. But it’s also hard to think straight and bring the characteristic GEAB perspective into the current media hysteria. [...]