Gold Miners Gain From Geopolitical Crises

By Troy Kuhn
Bidnesss Etc.

gold100s-160The on-going geopolitical instability, especially the Ukrainian crisis and the Israel-Palestine war, have serious repercussions for the markets at large. The impact on the financial markets is wide-spread — investors become more conscious of losing their investments’ value — and the shuffling of savings from one asset to another begins. Usually, investors move their investments from risky assets, such as equities, towards safer options, such as US bonds or precious metals.

As the events in Ukraine unfold, financial markets become volatile. Gold, the most widely recognized safe-haven investment, has wide-swings in its price over the past fortnight. The price of gold fell from a high of $1350 on July 11 to below the $1,300 mark, reaching $,1297 by July 15 as the Federal Reserve signaled that it will increase interest rates as the economy recovers.

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