Gold Investors are Frustrated Because they were Actually Right

To hedge against inflation, investors bought gold on a massive scale last year. And they were right, inflation actually happened. But the gold price is still not rising. There are two reasons.

The inflation rate continues to rise. The price of oil is around $ 80 a barrel and continues to climb. Other energy costs such as natural gas are also rising sharply. The prices of raw materials are skyrocketing. Against this background, the gold price should actually skyrocket. But the opposite is happening. Even though inflation remains high, the price of gold continues to decline, while other investments, such as stocks, seem to rise incessantly.

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Summary

To hedge against inflation, investors bought gold on a massive scale last year. And they were right, inflation actually happened. But the gold price is still not rising. There are two reasons.

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