WORLDWIDE INVESTMENT HUB

The Worldwide Investment Hub has been operating all over the globe for close to a decade. We believe our impact can be even greater by letting the public into our literal Pot Of Gold.

HERE'S HOW!

Today, gold is sought after, not just for investment purposes and to make jewelry, but it is also used in the manufacturing of certain electronic and medical devices. Gold (as of March 2021) was over $1,700 per ounce, and while down more than $300 from September 2020, still up considerably from levels under $100 seen 50 years ago.

 What factors drive the price of this precious metal higher over time?

• Investors have long been enamored by gold and the price of the metal has increased substantially over the past 50 years.

• Like most commodities supply and demand is incredibly important, but gold also retains additional value.

• Government vaults and central banks comprise one important source of demand for the metal.

• Investment demand, especially from large ETFs, is another factor underlying the price of gold.

• Gold sometimes moves opposite to the U.S. dollar because the metal is dollar-denominated, making it a hedge against inflation.

• Supplies of gold are primarily driven by mining production, which has leveled off since 2016.

Central banks hold paper currencies and gold in reserve. As the central banks diversify their monetary reserves—away from the paper currencies that they've accumulated and into gold—the price of gold typically rises. Many of the world's nations have reserves that are composed primarily of gold.

Bloomberg reported that global central banks have been buying the most gold since the U.S. abandoned the gold standard in 1971, with 2019 figures dipping just modestly from 2018's 50-year record.2 Turkey was the largest buyer of gold in 2019, followed by Russia, Poland, and China, according to the World Gold Council. In all, governments bought a total of 650 tons of gold in 2019, down modestly from the 656 tons bought in 2018, and still near highs not seen in 50 years.3