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Trading Gold as Safe Heaven

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The History of Trading Gold as Safe Heaven in Under 10 Minutes

Gold is a precious metal that has been used as a form of currency, ornamentation, and a safe haven due to its tendency to retain or increase its value during periods of market turbulence. During the Great Depression of the 1930s, it became clear that gold was a powerful asset that could be used to protect assets or serve as an alternative currency in case of an economic disaster. This understanding catapulted gold into a new role in international markets.

History has shown us that gold is a solid hedge against inflation and other economic turmoil. Since the dawn of time, humans have used gold as a currency and valued it as a safe haven during economic uncertainty. But it wasn’t until 1879 that countries started pegging their currencies to the value of gold. The US Dollar acted as the world’s reserve currency until 1971, when they disconnected the USD from gold entirely.

The price of gold fluctuates on a day-to-day basis , depending on global factors such as the stability of world economies, changes in central bank exposure to the metal and fluctuations in industrial applications. Overall, many experts predict that gold will continue to increase in value over the long term, so long as the global economy maintains its steady growth.

There are many reasons one might trade gold — it's a safe haven in times of economic turbulence, when it tends to hold its value or appreciate. It also capitalizes on a weak US dollar, and hedges against inflation. It is also a great way to diversify your portfolio of commodities, stocks, bonds, and more.

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