The gold rally has stalled somewhat. Currently, the bulls are still defending the $ 1,700 round mark. Yet another phase of weakness can be seen as a healthy consolidation given the previous rally. Steve Forbes, Chairman and Editor-in-Chief of Forbes Media, is now speaking in a podcast and commenting on the measures taken by governments and central banks, and also talking about gold.
Gold as a safety net
“The trillions of dollars spent to save our virus-infested economy fuel inflation fears,” he said. “Gold has always been a hedge against the government’s economic failures.” Government action could lead to gold rises as it did in the 1970s, joining a number of analysts who see gold prices rising from a fundamental perspective. “If you had put $ 10,000 on the stock market a year ago, you would have If you had put that $ 10,000 in gold, you would have $ 13,500 today, which is over $ 4,500 difference. Gold has surpassed it significantly since its shares peaked in February, “he said. Still, investors should do not put everything on the card gold, since gold does not work like a company, but in the end is just a piece of metal that serves as insurance.