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

  • A Fragmented World: North-South Perspectives
    December 16, 2022
      The rise of inequality is becoming one of the biggest concerns for developed, developing and emerging economies. Nowadays, more than ever, it is becoming an extremely important issue facing many economies around the world, not only from an equity point of view but also from an econom...
  • Fighting Inequalities: The Role of the Social State in the Wider Atlantic
    December 15, 2022
    facing many economies around the world, not only from an equity point of view but also from an economic and social perspectives. The recent COVID-19 crisis has highlighted the weaknesses of the global economic system and has also put strong emphasis on the importance of the social state...
  • Climate Change Cooperation
    December 15, 2022
    An unprecedented threat to humanity, the climate crisis has been worsening for decades. Global warming is profoundly impacting the environment, the global economy, and the international peace and stability on which humanity depends. Food production, access to fresh water, and livable am...
  • Atlantic Multilateralism and Prospects for a Pan-Atlantic Community
    December 15, 2022
      The Atlantic Basin can be considered a relatively peaceful geopolitical space. However, unprecedented challenges in terms of policy planning and strategizing have had to be faced by South and North Atlantic states. The conjunction of sanitary, economic, and political crises has raise...
  • NATO, the South Atlantic, and the Global Strategic Balance
    December 15, 2022
    The growing tensions in international relations that culminated in the war in Ukraine and the Sino-American rivalry put NATO and the dialectic of the transatlantic alliance back at the forefront of global strategic affairs. The 2022 Strategic Concept falls within this dynamic by confirm...
  • The Consequences of Inflation in the Wider Atlantic
    December 14, 2022
    Inflation is back on the agenda. The rise of inflation occurred in the aftermath of the global activity rebound out of the COVID-19 when global value chains were severely disrupted and have been contending to recover since then. The Russia-Ukraine conflict added new strains over the glo...