Instability in the banking sector has raised concerns, causing confusion around gold purchases. Faced with liquidity issues announced by American banks such as Silicon Valley Bank and Signature Bank, and news of difficulties with the European bank Credit Suisse, investors turned to safe assets to protect their capital.
Global central banks, governments, and commercial banks quickly reacted to address the situation. UBS acquired Credit Suisse with the financial support of the Swiss government, and the Federal Reserve provided assistance to the affected banks, thereby mitigating the crisis at least temporarily.
However, the price of gold remains high compared to levels from the year 2000 and is approaching record highs from 2022. Edisongold offers clients the opportunity to invest in investment-grade gold, an excellent means of protecting wealth in an uncertain economic context.
Several factors contribute to the increasing popularity of gold. The mini banking crisis prompted central banks to reconsider their interest rate policies. Higher interest rates can put pressure on bank balances, so central banks, like the Federal Reserve, are encouraged not to raise interest rates further.
In an unstable economic environment marked by high inflation and geopolitical tensions between the US, Russia, and China, gold becomes an even more attractive investment. Russia, China, and their allies are working to reduce the dominance of the dollar globally, while the World Gold Council (WGC) reports that central banks are purchasing record amounts of gold to cope with these uncertain times.
