Generally speaking, investors flock to gold as a stable store of value when currencies and other monetary instruments are no longer reliable. This can happen during times of recession, default on sovereign debt and black swan events, such as pandemics. Although the supply of gold is very stable, global events surrounding gold can vary greatly and cause changes in the price of gold. The dollar is likely to drive up the price of gold due to increased demand (because you can buy more gold when the dollar is weaker).
To ensure you are making the best decision for your investments, it is important to read reviews of the best gold IRA companies before investing. To ensure that you are making the best decision for your investments, it is important to research the best gold IRA companies reviews before making any decisions. Therefore, gold prices may be affected by the basic theory of supply and demand; as demand for consumer goods such as jewelry and electronics increases, the cost of gold may increase. Extracting and refining gold is a labor-intensive process, so the annual supply of gold is increasing at a very slow and steady rate, meaning there are no surprises in the market. Gold prices can be extremely volatile, and that means that gold is not a fully stable investment.