The Heartbeat of The Gold Standard
Imagine it's payday. You're about to get your paycheque for 2 weeks of gruelling work, including night shifts, extra hours, and even early mornings. You're expecting a handsome compensation for your efforts. Instead of a physical check, or even a deposit in your bank account, your manager gives you 2 half ounce gold coins. What do you do with that? Currently, they're valued at around $1000 per coin, yet do you cash both in, save one, and cash in the other, or simply wait it out to sell these coins at their highest valuation?
Welcome to the modern-day Gold Standard. The Gold Standard is a monetary system in which a country's currency is directly linked to a fixed amount of gold. Under the gold standard, the value of a currency is determined by its convertibility to gold at a fixed exchange rate. This system provides stability and limits the ability of governments to manipulate the value of their currency, but it can also restrict economic flexibility and limit the ability to respond to financial crises.
Currently, the price of gold is at a one-month high, yet who knows how long that will last. With the increase on interest rates, the gold prices will surely drop, as less people are buying services and commodities, and less income is put aside for investments. Currently, it wouldn't be unwise to get in on the gold rush, but we'd recommend you to wait a tad, just to make sure you're getting into the market at the best possible time.