The Western economies where hit back in 1980 by a series of crisis were coming one after another. The unbelievable thing was that in the middle of all that chaos, gold managed to reach 850 dollars an ounce. This price was seen again only after about 30 years.
The well-known agreement signed at Bretton-Woods after the end of World War I, stated that the dollar was interchangeable with gold at a price of 34 dollars an ounce. But back in 1960, the French had their suspicions about the fact that the Americans printed so many dollars and they didn’t have enough gold to back them up.
After hearing about France’s move, the Central Banks of Belgium, the Netherlands, Germany and even Britain also decided to change their dollar deposits into gold. The big demand for the precious metal determined a great rise in gold prices and soon the glittering metal reached a peak of 850 dollars an ounce in 1980.
In our days, China decided to diversify its reserves while the US currency was weak and so it began to invest in the yellow metal. Also, it is a known fact that countries like Venezuela and Russia have been investing in the glittering metal for years. The boldest country of all was India, because in 2009 it bought 200 tons of gold from the International Monetary Fund. And one of the worst moves in 2009 was Gordon Brown’s decision to sell a very big part of the British gold reserves.
This is a period in history when the Central Banks have become buyers instead of sellers. It is a time when people are investing in the yellow metal in order to diversify their portfolio. They have realized that gold is a valuable and safe asset to own and this is why they are trying to come up with the money to invest in the glittering metal. If you would like to invest in the yellow metal, then you should start with a little research and then decide what you want to do.