According to Bloomberg, an increase in global demand for gold from institutional and individual investors is a consequence of geo-economic instability, portending a crisis.

The yellow precious metal is considered a defensive asset, and now it has become more popular than ever because of the easing of monetary policy, trade wars and huge volumes of public debt, destabilizing the modern world order. We will understand this in more detail.

According to the World Gold Council, during this year, central banks around the world bought more than 450 tons of yellow precious metals for their reserves. It is worth noting that for 10 years, central banks have been net buyers of gold. In recent years, they have increased their purchases, anticipating something was wrong with the global economy.

In September, the volume of investments in world gold exchange funds and similar products amounted to $ 3.9 billion, which led to an increase in the total number of shares by 75.2 tons to 2808 tons, which is a record high. Thus, the indicator of the end of 2012 was overcome, when the price of gold was about $ 1,700 per ounce, which is 18% higher than the current level.

September was another record in the gold market. In the CME Group, the largest exchange-traded derivatives market in the world, an average of 818 thousand gold contracts were traded daily for the indicated period, which is 37% more than last year. This is the second largest indicator in the history of this exchange.

Recall that the gold exchange rate rose by + 17% this year. The American bank Citigroup forecasts growth to $ 1,700 per ounce in 6-12 months in the event of an escalation of the trade war.

In conclusion, I would like to quote a recent statement by the Central Bank of the Netherlands. "If the system collapses, gold can serve as the basis for its restoration. Gold strengthens confidence in the stability of the balance sheet of the Central Bank and creates a sense of security," the report said. The fact that regulators themselves admit that the fiat currency system may collapse is a very alarming sign.