For centuries now people have hoarded and treasured gold as a guarantee of prosperity. The price of gold per ounce is seen as an accurate barometer of the state of the world’s finances. As such, this is where investors tend to turn whenever there’s a war. Of course, it also helps that these things tend to push the price of gold up, sometimes causing it to peak at record-breaking highs.
Gold’s Performance In Times Of Political Strife
In order to get a clear picture of how gold performs during times of political strife, there is no better illustration than Iran’s 1979 revolution. That year the price of gold opened at $226.80 per ounce with not a lot of mobility during the month of January. This changed in 1979 when the Ayatollah Khomeini landed in Tehran, returning from his exile to Paris. At that time the price of gold jumped to $243.10 per ounce then by June it was at $280 per ounce and by August is stabilized at over $300 per ounce. However, in September gold broke new ground reaching a new high of $380 per ounce. There was also some turbulence (i.e. an assassination in France, a change of Afghanistan’s government, the U.S.S.R. held several nuclear tests, Iran’s revolution continued on) that month too though. So, it came as no surprise to most people that in October the price of gold reached over $400 per ounce and by January 1, 1980 gold’s new price was $512 per ounce.
While you might think that things would end there, they didn’t. Instead gold soared to even greater heights in January 1980. The first day that trading opened that year gold settled in at $559.50 per ounce in London. However, the following day gold closed at $634 per ounce. This triumphant climb continued onwards and upwards from there. By the end of January the price of gold pushed $850 per ounce but then the price finally settled back down and by the end of 1980 it was only $589.75 per ounce. All of this was due to political movements.
Clearly you can see how political events create a climate of uncertainty. Therefore, having professionals like Regal Assets company by your side in precious metals investing would definitely be beneficial. This will in turn play a deciding role in driving investment funds to favor gold. As such, there is a definite link between world events and the price of gold per ounce.