Publications /
Policy Brief

Back
Download PDF
French Version
Gold: a safe haven in difficult times
Authors
Henri-Louis Vedie
September 30, 2020
Related topics: 

In recent months, the price of gold has rebounded, taking it to new heights. The analysis of the prices of this precious metal over the last two centuries has shown great stability until 1971, when the United States abandoned gold/dollar convertibility, but also its erratic movement since then. Subject to the laws of the market, the price of this raw material depends essentially on demand. This trend confirms that this asset is a safe haven in difficult times, without however contemplating its re-monetization. This rebound, which is cyclical in nature and occurs in the short and medium term, is a godsend for gold-producing countries, at the forefront of which are China, Russia and Australia, but also some African producers, such as Ghana.

Gold is shining bright, while its prices are at their highest level in history, with an ounce exceeding $2,000. The purpose of this Policy Brief is to examine and look into the reasons behind this recent price surge, which will enable us to know whether this surge is cyclical or structural, and who are the beneficiaries and victims.

RELATED CONTENT

  • ...حديث الثلاثاء : الرئاسة الفرنسية لمجلس الاتحاد الأوروبي: أهدافها، تجلياتها
    February 2, 2022
    حديث الثلاثاء: الرئاسة الفرنسية لمجلس الاتحاد الأوروبي: أهدافها، تجلياتها، وتأثيرها على الشراكة المغربية الأوروبية يخصص مركز السياسات من أجل الجنوب الجديد حلقة برنامجه الأسبوعي "حديث الثلاثاء" لتقييم الرئاسة الفرنسية لمجلس الاتحاد الأوروبي: أهدافها، تجلياتها، وتأثيرها على الشراكة المغرب...
  • Download PDF
    Trade and Youth Labor Market Outcomes: Empirical Evidence and Policy Implications
    Authors
    Mina Baliamoune
    February 1, 2022
    We examine the effects of trade on youth labor force participation and unemployment rates by performing fixed-effects and Arellano-Bond GMM estimations on data from 89 developing and emerging economies from 1990 to 2018. The empirical results suggest that trade openness has U-shaped effects on youth labor force participation rates, with negative impacts at low-to-moderate levels of trade and positive but minor effects at relatively high levels of trade. Except for Latin America, the ...
  • How Can Data Collection Help Inclusive Green Finance?
    Authors
    Morten Seja*
    Charlie Knight
    Hadley Hilgenhurst
    Amlan Banerjee
    Omair Azam
    January 31, 2022
    Setting the Scene for the Current State of Inclusive Green Finance Climate change is one of, if not the biggest, challenges facing the world. The challenge extends to banking regulators, who, in addition to other responsibilities, are now tasked with ensuring financial inclusion and climate change mitigation. However, central banks realizing how important inclusion and climate change are is only the first step. As part of this process, they need to understand how to define Inclusiv ...
  • Download PDF
    Innovation in Africa: Nature and Evidence
    Authors
    Emmanuel Pinto Moreira
    January 31, 2022
    According to the Oslo Manual, innovation can be defined as “the implementation of a new or significantly improved product (good or service), or process, a new marketing method or a new organisational method in business practices, workplace organisations or external relations” (OECD, 2005, p. 46). For today’s middle-income countries in Africa, innovation is essential to sustain growth and promote the transition to high-income status. This paper begins by providing a summary of theore ...
  • A plethora of strategies and plans
    Authors
    Helmut Sorge
    January 31, 2022
    It has been more than 100 years since Germany manifested colonial power, a dark period of history indeed. Political and military leaders, supported by its ruler, Wilhelm II, Emperor of Germany and King of Prussia, committed crimes against humanity on African land.  The first genocide of the 20th Century, mass killings of 65 000 Herero in Africa, today known as Namibia. Between 1904 and 1908, Germany suffocated humanity in concentration camps like Shark Island, forcing them into dead ...
  • Argentina Avoids Falling into Arrears with the IMF
    Authors
    Otaviano Canuto
    January 31, 2022
    On January 28, both Argentina’s government and the International Monetary Fund staff made announcements about an understanding on new support program. Meanwhile, in addition to the payment of an amortization due on January 28, another payment is also expected in the first week of February. Both payments relate to the previous package, approved in 2018 and substantially disbursed thereafter. Non-payment could sour relations at a critical moment for a new program to be approved by the ...
  • Africafé : quelle place pour les pays de l'Afrique au sein du Commonwealth?
    January 27, 2022
    Africafé est une émission du Policy Center for the New South qui décrypte l’actualité des organisations africaines et de l’Afrique. A travers de courtes interviews, l’émission tente de proposer d’aborder de manière pédagogique les enjeux des organisations africaines et l’actualité du co...
  • Will emerging economies face a hard landing?
    Authors
    Otaviano Canuto
    January 26, 2022
    The year began with simultaneous signs of a slowdown in global economic growth and a reorientation toward tightening of monetary policies in advanced economies. In its latest Global Economic Prospects released on January 11, the World Bank forecasts that, after a global growth surprisingly at 5.5% last year, it should moderate to somewhere around 4.1% and 3.2%. % in, respectively, 2022 and 2023. In addition to the effects of omicron at the start of the year, less fiscal support and ...