Rising Interest Rates Could Devastate Gold's Investment Value
Gold has been a sought-after prize since the beginning of recorded history. From the days of the ancient Mesopotamians to the 21st century, gold has been used for everything from jewelry to currency. And while gold is still prized for numerous industrial and cosmetic purposes, it’s also valued in the investment world. In recent years, the yellow metal has truly sparkled, even when compared with the return of the stock market.
- The correlation between rising interest rates and a decline in gold prices highlights the delicate balance between these two financial assets, underscoring the need for investors to carefully consider their portfolios' compositions.
- How will the potential impact of inflation on central banks' gold reserves in the coming years affect the long-term demand for physical gold?