Economists say that gold remains the most effective hedging instrument to protect your capital, especially in turbulent times. Many experts link the rise in gold’s value with the temporary instability of world markets. Market analysts note that during times of relative stability, the gold market is usually flat and the stock market is on the rise. On the verge of an economic crisis, precious metals seem to be the best option to invest in. Currently, gold is a more profitable asset compared to bank savings accounts in foreign currencies. The interest rate on bank deposits is often lower than the inflation rate. So this instrument is hardly suitable for saving money as well as stocks, as the market becomes volatile amid risks of economic downturn. Therefore, gold remains the most reliable option for saving money. High demand for gold in China also supports the asset. If gold’s demand strengthens, it will continue to grow, experts say. The bullion is actively purchased in China, and Russia, as one of the major gold mining countries, is ready to increase its supply. If such a scenario plays out, gold will increase in value, analysts concluded.
