The World Has Become A More Dangerous Place: Gold Is A Safe Haven

The world is more dangerous now than it was a few years ago, according to a new survey from Pew Research Center and USA Today. The survey revealed that 65% of those polled believe the world is more dangerous than several years ago, 7% feel the world has gotten safer, and 27% believe things haven’t changed much.

The Pew Research Center also noted that perceptions of the United States as a global power have plunged near a four-decade low. The study showed that 48% believe the U.S. is a less important and powerful world leader that it was 10 years ago.

As global political, military instability continues to increase —that in turn can have economic implications. Throughout history, gold has been considered a safe-haven investment and store of value that is essentially driven by the free market and can’t be influenced by monetary policies of a government.

Current day gold demand generally revolves around four key categories including:

  1. Jewelry,
  2. Industrial demand,
  3. Investment demand and
  4. Central bank purchases.

Safe-haven or diversification demand would fall into the investment demand category.