As the Ukrainian crisis compounds market turbulence and economies continue to battle COVID and rising inflation, the price of gold has hit a wave of volatility.
Gold prices opened strongly on Monday, jumping from $AU2632 per ounce to $2682 in the early hours of the morning, edging closer to 2020’s all-time high of $2841, according to Bloomberg.
Rush Gold chief executive, Jodi Stanton, said while the appeal of gold in times of crisis had not changed for 4,000 years, what had changed was that technology was making it easier for traders to secure it while attracting new and younger investors.
“The next period is going to be a time of learning and adaptation as the world grapples with yet another geopolitical crisis in a digital economy,” he said.
“The one thing that can be determined though, is gold as a currency has already weathered every single crisis down throughout history, but this time with the added benefit of being recently modernised to suit the current climate.
“With unparallel accessibility and liquidity, the world’s oldest trusted currency is now the newest.”
Stanton said it was becoming clearer that Bitcoin and gold were serving entirely different functions.
“We’ve always been of the view that gold and Bitcoin serve entirely different functions, and this is being borne out in markets, with Bitcoin correlating to riskier assets like shares and gold showing clear hedging and capital preservation traits in times of turmoil”.
