The demand for gold is higher today than it was ever before and rightly so—after all, it is the most reliable form of currency. It is secure and safe, and its market demand has always been strong. Think about it: Whatever happens in the real world and in the market does not impact the value of gold. Great Depression? No impact on gold and its demand. CVID-19 pandemic? Again, no impact on the demand and value of gold.
As the threat of recession looms over our heads, investors are worried about putting their money into investment portfolios. But there is one portfolio that is still an unbeaten king: Gold. Regardless of the sky-high inflation and financial uncertainty, giant investors still think gold is a safe haven investment market.
What does this mean, you may wonder? Well, it is apparent: Gold has always been the safest and most secure asset that you can ever own. Yes! It is even better than the hard cash (the bill) that you carry in your pocket or your bank account. Why? Its demand is always high – no matter what happens in the market. And the price of gold keeps going up.
This brings us to the fact that gold miners and gold itself is back in the trend. Given all these features of gold, its future seems pretty bright. At this point, it is sensible to ask whether or not gold will replace hard cash, becoming the new currency.
This is what we are going to focus on in this article. Now, let’s go ahead and see if gold is all set to be the new currency:
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China & Russia are Making a Deal of Working Based on a Gold-Backed Currency
One of the foremost developments in the gold industry is the novel deal between China and Russia. As Russia continues its aggression in Ukraine, countries are parting ways with Putin. But one Russian counterpart has made a controversial move and decided to carry on its alliance with Russia. Needless to say, it is China.
Since Russia is isolated internationally, Putin has taken some controversial steps. Perhaps the foremost among them is trading with other countries in gold currency. As the United States has ‘banned’ all the major trades with Russia, Putin does not want to trade in the U.S dollar.
Thus, coming up with a ‘new’ international currency has been something that Putin has paid keen attention to. And they have come to the conclusion that gold can be the best available option. This is where the Chinese counterpart comes into play and is all set to join hands with Putin.
However, the gold-back currency is not yet officially announced, but it seems like it will take effect real soon. Once that happens, gold will be the new currency, and we will say goodbye to the raw cash that we carry in our wallets.