In this video, I explain in detail the relationship between the price of Gold and the interest rate on 10-Year Government Treasury Bonds.
You will understand why Gold is used as a hedge against inflation when investors cannot protect the purchasing power of their wealth through the purchase of government treasury bonds.
Gold has risen in value by 231% since 2007 from $545 an ounce to $1,809 an ounce.
As central banks must keep interest rates low coming out of the Covid-19 pandemic to help governments borrow huge amounts to inject stimulus into the economy, gold remains alongside stocks the only way investors can hedge the risk of inflation from eroding the value of their wealth.
We also look at Gold priced in Euro's, Pounds and Australian dollars as interest rates in Europe, Australia and the UK have hit record lows over the past few years.
You are going to love this educational video!!!